If you think you may still be able claim PPI compensation, take note of this week’s article on the Kiran Trivedi blog, as I ask whether you could still be entitled to a pay-out.
PPI: The Largest Consumer Mis-Selling Scandal in British Financial History
Welcome the PPI scandal; the largest consumer mis-selling scandal in British financial history. PPI refers to Payment Protection Insurance, and lenders provided it to people in certain cases where they would have no choice but to default on the repayment of a loan.
The financial crisis back in 2008 prompted the Financial Conduct Authority to look into banking practises, and they found that lenders had been selling it to people that either weren’t ever aware they’d actually been sold it, or had been sold it, but would never be able to claim on it. The result; consumers have been paid billions back in mis-sold PPI compensation.
Could You Still Claim PPI Compensation
Pay outs started coming in in 2011, and this would lead you to believe that by now, most people would have gotten what they’re entitled to, and thus it’s unlikely you’d still be able to claim it. Not so.
An expert commissioned by the BBC has found in fact that there is a £1 billion shortfall in PPI compensation. Although it’s currently difficult to gauge the scale of the issue, the expert found that customers who had been sold PPI on their credit cards could be in line for more compensation. According to the expert, this applies to customers who had cards issued by Lloyds Banking Group, Barclays, MBNA and Capital One
Under initial claims, banks only refunded the premiums on their mis-sold PPI plus interest. According to the news source, they failed to refund the additional charges which triggered the premiums.
Kiran Trivedi Lets You Know How to Claim Compensation
If you fall into this category, then you might be able to claim compensation, and to do so, you need to first go to the lender in question and begin their PPI claims process. If they reject your claim and you wish to appeal, go to the Financial Ombudsman.
If you are entitled to extra compensation then by all means claim it Kiran Trivedi readers. It’ll give your budget just the boost it needs for you to make sure your personal finances are stronger than ever going forward.
Kiran Trivedi 