Compensation claims set to be bigger than endowment scandal
- 7TH JUNE 2007
According to Defaqto, the financial research agency, there will be tens of thousands of complaints regarding the mi-selling of payment protection insurance (PPI). If this is so then it could well rival the recent endowment mis-selling scandal.
The Office of Fair Trading, the Financial Services Authority and now the Competition Commission have had the sector under their watchful eye with the result of the Commission’s recommendations not expected until February 2009.
As the investigation continues the anticipated crack down on the high premiums the banks charge for their policies is going to mean that they will have to recoup their losses some other way.
This means that currently the consumer cannot win as while fairness might be in order when it comes to payment protection insurance policies, the banks will start charging to use current accounts. Along with this charges are also thought to be in the pipeline for things such as writing and receiving cheques and having an overdraft.
Ironically, with people facing more expense than ever, the need for payment protection insurance is greater than ever. Simon Burgess from standalone provider British Insurance not only sells good quality products for the lowest premiums around but also gives advice to those who think they might have been mis-sold a policy. British Insurance is a specialist payment protection provider who strongly believes in putting the consumer first.
Simon suggests that if you are one of the people who have been “ripped-off” then first get in touch with your lender. If your lender plays hardball then take your complaint to the Financial Ombudsman.
The Financial Ombudsman is an independent service which can be used to settle disputes between businesses providing financial services and consumer who purchase them.
