Payment Protection Insurance

Payment Protection Insurance - The Facts on PPI Unnecessary and excessively priced Payment Protection Insurance (PPI) has been packaged alongside Credit cards Car financing by banks Loans Lenders and brokers Mortgages last 20 yearS. for the The main problem with PPI is that it was usually included without you knowing about it, wanting it, or needing it. £89 PURE PROFIT IN EVERY £100 WAS so PPI Policies were often sold by un-trained PPI became the most complained about product ever when complaints figures from the Financial Ombudsman Service show payment protection sales staff, incentivized with commisions, just to maximise the number of new customers paying for worthless, expensive coverage. insurance accounted for of its workload in 60% the past year. The uphold rate for cases reviewed by If you've had a loan, credit card or mortgage over the last six years then the FOS is around 90% your bank account may still be releasing hidden payments for completely useless PPI. he amount of A survey of forty-eight major lenders found the price of PPI was 16-25% the debt. The cost of PPI for the average credit card in the UK charging 19.32% on an average of £5,000 each month adds an extra £3,219.88 in premiums and interest. 19.32% The first ever PPI case was in 1992-94 (Bristol CC 93/10771). The case was proven and won when it was judged that the total PPI premiums were nearly as high as the total benefit that could be claimed under the coverage. Because of a non-disclosure agreement, a copy of the judgement was not sent to the Financial Ombudsman Service and the Citizens Advice Bureau until 10 years later. Soon after, Citizens Advice Bureau (CAB) launched a Super Complaint into what it called the "Protection Racket." The judicial review that followed ruled in favour of the consumer. citizens advice bureau Banks, lenders and insurers were ordered look into all PPI policies they have sold as part of a High Court ruling in May 2011. In addition the High Court Judge also demanded that all previous payouts must be reviewed for any under-settlements. If a policy was found to be mis-sold, they must refund any payments made. July 2012 - the major UK banks have set-aside almost £10 BILLION to refund anyone who has been mis-sold PPI. LLOYDS BANK Lloyds Bank set aside £3.6 BILLION INTERNATIONAL HSBC HSBC have provisions of £745 MILLION RBS – set aside £850 MILLION for PPI claims *RBS The Royal Bank of Scotlond Group BARCLAYS Barclays – set aside £1 BILLION for PPI claims O Santander Santander – set aside £538 MILLION for PPI claims HALIFAX Halifax – £3.2 BILLION for PPI The Largest PPI Claims Refund Received by a PPIReclaimCo.co.uk Customer £52,851 £11 million - £4.3 billion – The amount that the Financial Services Average profit made each year by UK Authority (FSA) issued in fines to UK lenders from PPI policies. lenders. Payment Protection Insurance can be extremely useful insurance in some circumstances... PPI but the terms should be reasonable and you should be aware you are buying it. Over 1 million people have already made a PPI claim. You could be owed more than you think - average customers may have as many as four mis sold PPI CLAIMS COMPANY policies hidden inside all types of credit agreements, and the average refund is £3,000. PLUS the interest your money would have received had it been in your savings account. What a brilliant result! Source: http://www.oft.gov.uk/shared_oft/super-complaints/oft825.pdf Source: http://citywire.co.uk/money/ppi-becomes-most-complained-about-product-everla590862 Source: http:// thisismoney.co.uk/money/saving/article-2137733/Banks-face-PPI-agony-claims-rise.html Source: http://en.wikipedia.org/wiki/Payment_protection_insurance Source: http://www.ppico.org/ Image Source: "Credit Cards" by James Barker / http://www.freedigitalphotos.net "Hand Giving Money To Other Hand" by creativedoxfot / http://www.freedigitalphotos.net "Hands With Money And Miniature House" by Sujin Jetkasettakorn / http://www.freedigitalphotos.net "Car Loan On Laptop Shows Automobile Sales Website" by Stuart Miles / http://www.freedigitalphotos.net "Property Investment" by vichie81 / http://www.freedigitalphotos.net "Percentage And Dollar Cubes" by ddpavumba/ http://www.freedigitalphotos.net "Business Person With Cash" by Ambrol http://www.freedigitalphotos.net