The PPI debacle

Payment Protection Insurance or PPI is being routinely miss sold by some of the UK’s leading banks. PPI is something that offers insurance for credit agreements has seen its sales increase four fold in the last year. HSBC, Barclays, Lloyds TSB and Santander have been named as the biggest offenders. Lloyds alone is receiving a staggering 16,000 complaints each week about the miss selling of PPI.

Santander is regarded as the more professional of all the banks and they did not participate in the Judicial Review which took place earlier in the year. The bank however have still got a reserve of over half a billion pounds just to deal with claims that arise from PPI complaints. The other banks have put aside even more with Lloyds leading the back with over £3 billion kept away. HSBC have put aside less money but claim that the miss selling was occurring because of under trained staff rather than deliberate deception.

Whether you choose to take out PPI has no impact on whether you will be offered credit or not and many of the banks have been telling customers otherwise, deliberately saying that if they don’t buy it they won’t get a loan. This is simply not the case and many people have been tricked into buying unnecessary PPI policies.

The ruling that came earlier this year has said that those who were miss sold policies could be entitled to thousands of pounds in compensation. If you have used credit in the last decade, such as for a mortgage or credit card then you may well have been miss sold a policy. The company Reclaims UK are helping people to find out if they have a claim and they will quickly calculate how much it is worth and help you to recover the money.