26 August 2010

PPI Claims Keep Going Strong

Are you one of the millions of unemployed people in Britain? Have you bought cover on your insurance and thought that now you have lost your job, you are at least covered on your repayments?

Over 800 people a week are now complaining that their Personal Protection Insurance (PPI) was nothing but a scam, and that they were mis-sold their policy.

Insurers and lenders are claiming that there is no wrongdoing from their side, and that they have never mis-sold loan insurance.

But the cases are being looked into by the Financial Ombudsman Service (FOS) although many cases are being upheld, which means that lenders must pay compensation to customers.

The FSA has stepped in and is banning all selling of single-premium PPIs and the selling of loan insurance at the same time as the loan.

There is cynicism over the case, as some are saying that the number of complaints is so high only thanks to media attention and watchdog campaigns. Either way, if you are one of the many unemployed, you may be less than impressed to find that you are not covered...

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