PPI: Finally good news for consumers
Customers who have been mis-sold Payment Protection Insurance have received £319million in payouts between January and July this year. The FSA reported that the biggest slice, a total of £206m, was paid out between May and July after the UK banks lost a judicial review which challenged the FSA over guidelines suggesting retrospective compensation.
During this time Claims Advisory Group alone helped their customers reclaim over £20million of mis-sold PPI.
The outcome of the Judicial Review is fantastic news for consumers as it means banks are now forced to look into past sales of Payment Protection Insurance even if the consumer hasn’t made a complaint.
Margaret Cole, from the FSA said ‘We remain 100% committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms progress to ensure this is done properly. Where we find this is not the case, we are not afraid to take tough action’.
PPI policies are designed to cover consumers in the event that they are unable to work due to illness, injury or redundancy ensuring that any loan repayments are kept up to date. Unfortunately many lenders mis-sold this insurance and policy holders found that PPI was useless to them as their claims were rejected, for example due to being self-employed or retired.