PPI Complaints Continue To Roll In

30/03/2010 by Bradders.

Payment Protection Insurance otherwise known as PPI is an insurance product offered by banks and financial services companies with nearly all credit agreements. This insurance is designed to protect the borrower by covering monthly loan repayment (such as personal loan, credit card payments, mortgages, car bought with finance deals) if the customer is unable to meet the repayments due to an accident, sickness, unemployment.

However the bone of contention is the fact that the institutions were selling this more for their own benefit rather than their army of loyal customersIt has been estimated that PPI generates as much as 5.5 billion pounds of annual revenue for U.K. banks.

The Office of Fair Trading has found serious failings with the way PPI is sold and there is to be a total ban on the selling of single premium ppi (the one the banks love) by October 2010.There has also been serious failings with the exclusions and caveats attached to these policies in the unfortunate event if someone needs to make a claim. This has led to many consumer watchdogs voicing their feelings that the great British public have been getting ripped off for years.However the worm has turned and the amount of ppi complaints for missold ppi is going through the roof.

The banks are being inundated with ppi claims and are having to increase staffing levels in their complaints departments to deal with this huge influx. Whilst a high percentage of these ppi claims are justified the banks are still refuting the majority of these and they are being referred to the Financial Ombudsman Service (FOS).The FOS is doing a sterling job under the circumstances but the sheer volume of ppi complaints is making the system creak under the strain.It has got to the stage where the FOS out of pure frustration recently published a report that showed the worst offenders with regards to consumer complaints.

The number of ppi claims they are now processing is almost 1000 cases a week which means the time it takes to process a claim is increasing all the time. Anyone who believes they were missold ppi should get their policy out and join the thousands of people who are making successful ppi claims against the institutions and getting their money back with interest. www.claimlineuk.co.uk 

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