Belmont Thornton

Belmont Thornton

August 17, 2011 11:50 ET

UK Banks Continue to Receive Complaints for Mis-Sold Payment Protection

LONDON, UNITED KINGDOM--(Marketwire - Aug. 17, 2011) - Payment protection insurance is a type of insurance cover sold with loans, credit cards and mortgages as well as store cards and hire purchase agreements. The purpose of the cover is to protect a borrower from financial hardship in the event of sickness, accident or involuntary unemployment by stepping in to cover repayments. Although the cover sounds good in principle the number of customers making a complaint regarding this type of insurance has risen dramatically in recent years. If you think you have been the victim of mis-selling, you have the right to make a complaint. If it is shown your policy was mis-sold, you could be entitled to receive compensation and Belmont Thornton can support you with your claim.

There are a number of reasons for the rise in complaints, but it can be largely attributed to a heightened public awareness of the issue of mis-selling. The problem of mis-selling was first highlighted in 2006 following investigation by the Office of Fair Trading and the Financial Services Authority. Their investigations revealed some significant issues with the way payment protection insurance was sometimes sold. Further investigations by the Financial Services Authority revealed problems with some specific lenders and some of these were subsequently fined. The investigations attracted media attention and many customers began to realise there were issues connected with the way their own policy was sold. In fact, the problem has been revealed to be so widespread that more than 1.5 million customers have made mis-selling complaints since 2006.

There are a number of different ways in which payment protection insurance can be mis-sold, but, essentially, 'mis-selling' means that there was some fundamental error in the way the sale was conducted. Examples of mis-selling include the customer being given incorrect information, for example that the cover was compulsory or would improve their chance of being given the loan or credit. Another common example is where customers are given incomplete information regarding the policy terms or costs and, therefore, did not have sufficient information to make an informed decision. A policy may also be considered mis-sold if it was sold despite being unsuitable for the customer's needs. Examples here could include a customer over the age of sixty-five being sold a policy that did not cover people in that age range or a customer being sold a policy despite already having cover in place elsewhere.

The PPI claims company, could help. To find out more about our services and making a claim for mis-selling visit our website today.

Contact Information

  • Belmont Thornton
    Laura Hestley
    0207 471 2000