|
|
 |
|
Wed 8th September, 2010
News
Payment Protection Insurance - Legal Update |
14th February 2009 |
 |
Payment Protection Insurance - legal update
Recent developments include:
In October 2008, the Competition Commission announced that from March 2010 PPI was no longer to be sold at the same time a loan is sold.
In January 2009 the Competition Commission banned the sale of PPI when arranging credit and for seven days thereafter and made further changes so that all PPI distributors are now to provide a personal PPI quote and annual statement.
Why have these changes been made?
The selling of loans is often not profitable to lenders unless they can 'sell' a payment protection insurance policy as well.
The Financial Services Authority ('FSA') currently estimate 70% of all PPI policies have been mis-sold.
If a customer has taken out a mortgage, a loan for a kitchen or a car, applied for a credit card or consolidated their debts, PPI will almost certainly have come into the equation. Of course, PPI can be an effective aid for some people, but government figures suggest they represent a tiny minority. The seller had a responsibility to inform a customer about the insurance and its restrictions - for example if a customer was not working at the point of sale - the insurance would be useless.
A customer may be entitled to reclaim thousands of pounds as they may have been sold insurance which did not account for their circumstances, or they may have been informed it was compulsory when taking out a Loan or Credit/Store card when it was not.
How can we assist you?
Unless the lender can satisfactorily justify that the policy was fair and reasonable we will request a full refund of all premiums, and subsequent interest on these payments, that a customer has paid to date. As the customer may have been deprived of this money we also expect 8% statutory interest, the amount a court would award, to be added to each payment made.
We can assist in reclaiming PPI contributions as well as looking at the enforceability of the loan. Simply send your name, address and details of the number of loans you wish for us to investigate to fcrt@lawcomm.co.uk with the subject “PPI claims” and we shall send you a welcome pack. Alternatively please telephone the Financial Claims Review Team on 01489 864100.
|
There is a downloadable file to go with with article:
Download Payment Protection Insurance - Legal Update (.doc)
|
|
|
|
|
 |
