Bank Snouts Still In The PPI Trough

18/10/2009 by Bradders.

The proposed ban on the sale of payment protection insurance (PPI) alongside a consumer credit agreement may have to wait a little longer.Payment Protection is the highly derided insurance intended to cover the repayments on an unsecured loan if the borrower loses their job or becomes too ill to work.

This form of insurance has been the subject of controversy for years with consumer groups claiming that the market is uncompetitive and the cover frequently mis-sold.Following a recent Competition Commission enquiry, the sale of single premium PPI (whereby the total cost of the insurance was added to the debt) has already been banned.

However, the Commission proposed introducing an outright ban on the sale of PPI alongside a loan and for seven days thereafter, in October 2010.Barclays and Lloyds Banking Group, two of the major advocators of PPI appealed against the decision, disputing some of the findings in the Commission’s enquiry and challenging the scope of the market definition set by the Commission.Barclays also claimed that the watchdog failed to take recommendations made by the bank into account in coming to its decision.The Appeal Tribunal has now asked the Commission to reconsider the ban or justify its position further.

The Financial Services Authority has recently ordered the UK’s banks and building societies to review their ppi complaints procedure regarding the sales of single premium ppi. Nearly 200,000 cases are to be reopened and looked at regarding missold ppi

Brad Martin of Claimline UK said “It seems ironic that two of the worst offenders regarding banking and ppi complaints have the audacity to try and protect their interests in this shoddy overpriced insurance. I would recommend that anyone who has a loan or mortgage, especially with these two banks to check if they have a ppi policy attached.

If they have and they feel that they were pressured into buying this insurance or perhaps didn’t realise that they even had it they should claim back every penny they are owed!”

Claimline UK 0800 622 6988 www.missoldppi.net  

Posted in Uncategorized | No Comments »