Payment Protection Insurance Saga Continues
Monday, 30 May 2011
The High Court last week dismissed attempts by Britain’s banks to overturn new rules on the sale of Payment Protection Insurance. But what is PPI? PPI is designed to cover a person''s loan or credit card repayments if they fall ill, have an accident or are made redundant. Companies typically try to sell PPI when a person submits an application for a credit card or loan, but there have been many instances of mis-selling in recent years.
Matthew Bailey, a partner says: “Due to this mis-selling, some consumers have found themselves unable to claim on their PPI policy, despite spending a significant amount of money on it.”
The new rules, from the City Watchdog the Financial Services Authority, require insurers to review past sales of PPI, even where customers had not complained.
Banks, represented by the British Bankers Association, challenged the new rules, saying they were being applied to previous sales. The judgment was welcomed by campaigners, but industry experts warned it would prove a “costly exercise” for banks that would look to recoup their losses with higher charges to customers.
Matthew comments: “If you feel you''ve been mis-sold PPI in recent months, seek expert advice today and make sure the banks are giving you the service you deserve. Seeking advice from properly qualified solicitors is essential.”
If you feel you may need advice we can advise you on the latest law in this field. Call Matthew on 01329 822333 for further information.
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