PPI Set To Be Banned

Over the last few years the financial world has suffered some heavy losses due to the economic downturn. And at the point where banks and other financial institutions thought they had hit rock bottom, the majority of the UK population that had been misold Payment Protection Insurance (PPI) began to realise that they could claim their cash back.

PPI is ‘insurance’ sold when you take out a loan. The idea behind PPI is a sound one, for example, if you take out a mortgage and cannot pay the repayments due to illness the PPI would pay your mortgage for whatever period the amount of PPI taken allows, a good idea.

The problem with PPI is that the majority of people ‘sold’ PPI where never actually told they were being sold it. And if they were told, they were miss-lead into thinking it was something different. So, thousands of the UK population where forking out money for an insurance package that they either did not need, they did not want or ask for, or an insurance package that was of no use to them and would never pay out in the event of a claim.

So what was the point in PPI you might ask? The answer is pure profiteering by financial institutions, to the tune of 4 billion pounds annually, all based on false information provided to the customer.

The Competition Commission has made it clear it intends to ban the sale of PPI at the point of sale. This allows the customer to look around and choose the best PPI for their needs if they see it necessary to do so. And on top of that millions of PPI customers are claiming back money they have unnecessarily paid out, to the tune of 177 million in the first 11 months of 2009.

This decision that the Competition Commission has made now means that financial institutions will no longer be able to sell PPI insurance products to their customers when selling a loan or other product.

There are many PPI Claim experts out there to help you claim back your PPI, contact Donns LLP to help withPPI Claims and for the best advice

categories: claims,ppi,payment protection,insurance,mortgage,loan,credit,bank

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