subject: The Implications Of Missold Ppi [print this page] Anyone who has paid Payment Protection Insurance (PPI) on credit cards, loans, mortgages and car finance could have been potentially missold the product. Payment Protection Insurance is designed to protect consumers in the UK who would be unable to meet repayments on credit cards and loans in the event of losing their job or becoming ill. In such circumstances, in theory, the payment protection insurance should cover those payments.
Financial institution regulators in the UK continue to be effective at preventing misselling as much as possible but some companies continue to operate unscrupulous practices. Millions of consumers who have purchased payment protection insurance have discovered that in the event of a claim that the insurance is of little use to them and offers absolutley no benefits at all.. Many consumers were sold products thinking that they had to buy such insurance cover, and in some cases, were not aware that they were buying anything at all. Such situations result in people having policies that may not offer the requirements needed, or provide insurance for circumstances that are already covered by the household's alternative products.
If a Lender is guilty of misselling PPI then they are obliged, as a result of a recent High Court Ruling, to refund the customer and place the client into the same financial position as if they had never taken out the insurance in the first place.. Even if insurance policies have been missold through genuine error, companies are responsible for compensating consumers. Individuals who believe they may have paid PPI on their financial agreements are advised to check their products to make sure they have not been missold a product which could have been offering a worthless service..
Many consumers are often shocked and surprised by the amounts of PPI redress they are owed by the Lenders as have not realised the vast amount of interest they have paid on the PPI premiums over the years and months. It is often the case that the Lender, particularly credit card companies, have been charging a very high rate of interest on the premiums and when a PPI claim is upheld all the PPI premiums plus interest on the premiums and also a payment for statuatory interest is added to the settlement. In many cases the offers of settlement run into thousands and thousands of pounds. Millions of UK consumers now have the right to seek financial redress as a result of a recent High Court ruling as a result of the fact that PPI is widely recognised as being potentially missold
