Billions of consumers become a victim of PPI mis-selling scandal every year and they can lose a huge amount of money. But good news is that, after FSA ruling, now they can claim their money back even with additional compensation which misleading banks owe to them. Such banks offer them attractive packages and consumers happily pay premiums without even knowing they are actually getting something which can turn to be disastrous and is totally useless for them.
Avaricious insurance brokers and high street banks are mostly involved in PPI mis-selling scandals. They want to make massive profit overnight without giving anything in return. The fact is Payment Protection Insurance (PPI) policy was aimed to protect those people, who were in a debt and make commitment to continue paying their loan in hard times such as in case of sudden layoff or loss of income.
Implications of PPI Mis-selling
The most serious result of PPI mis-selling was that, the majority of those paying for a policy were largely ineligible to claim owing to their personal situation or did not require any PPI package at all, because they were either getting coverage from any other source or simply not in need of it.
FSA went through a judicial review by which banks were legally assigned task to offer redress to those customers who were wronged by their PPI mis-selling.
At present, many financial institutions have allocated billions of pounds to replenish the monetary loss for those, who were mis-sold the PPI. They can claim their money back which they had paid out for a completely unnecessary and useless service.
Banks send letters to millions of people, who have been mis-sold PPI, so that they can file complaint and get into the process of claiming their money back. Timeframe is really important in that case because normally, the client is supposed to make a complaint within six years from a sale or in three years after they became aware of PPI mis-selling scandal. When a client makes complaint outside this time limit, the firm may not consider it by rejecting the complaint.