May 10, 2011
by admin
3 Comments
The High Court ruling on payment protection insurance means millions of people who took out policies could be entitled to some compensation. The insurance is supposed to cover loan and credit card repayments for those who become too sick to work, or lose their jobs. It was found out that many policies were sold to people who didn’t need them or who were ineligible to claim. Now millions of customers who were unfairly sold the insurance by the big banks are to be given refunds which could total £9billion.
Over 16million PPI policies will have to be reviewed by the industry, and it is believed as many as 40 per cent, could have been mis-sold. Each customer that has been mis-sold a the PPI will be entitled to a refund of their payments, which could run to several thousand pounds. Last week it emerged that the Lloyds group, which includes Halifax, had set aside £3.2billion to make refunds. Barclays has created a compensation fund of £1billion. RBS-NatWest faces a similar bill and HSBC has set aside almost £270million.
There has been cases where PPI was wrapped into the loan repayment arrangement without the cost and exemptions being properly explained. The banks made billions in profits from the policies. It has been said that for every £100 taken in premiums, they only had to pay out £15
savings interest rates
Discover the range of savings interest rates offered by various financial companies when you check out the link today.
