Financial Ombudsman and PPI
Claim Back up to 30 Years of mis-sold PPI
No Original Paperwork Required
The payment protection insurance (PPI) scandal has only grown in proportions in the past year as financial ombudsman and PPI are now becoming linked as thousands of people seek relief from through this time-honored service.
What is PPI?
Payment protection insurance is designed to help borrowers who owe money on mortgages, loans and credit cards cover their monthly bills if they are unable to do so themselves due to an unforeseen event such as an accident, illness or becoming unemployed.
Essentially, PPI was insurance to cover unforeseen events and to help protect the credit rating of borrowers in case the unexpected happened. Millions of people currently have PPI covering their loans and some loans have PPI requirements depending on the circumstances.
What is the PPI Scandal?
Over the past few years it was revealed that many banks and lending institutions in the UK has mis-sold PPI to thousands of borrowers, charged interest rates that were too high or in some cases actually charged borrowers for PPI when it was not requested or required in the loan. While the sheer number of ways PPI was misrepresented was considerable, the most popular abuses of the PPI system was as follows;
– PPI interest rates were overcharged
– Lenders informed borrowers that PPI was mandatory when it was not
– Borrowers were informed that they couldn’t get PPI coverage for their loan from another source
– Loan length and value did not match PPI length and value
– Borrowers that paid loans off early were not reimbursed for PPI payments.
Every day, people who have had PPI charges are discovering that they have been taken advantage of and are seeking help from a variety of sources. One of the most popular is the Financial Ombudsman Service.
What is the Financial Ombudsman Service?
The Financial Ombudsman Service is designed to resolve disputes between customers or borrower and the financial institutions of the UK. This service has been one of the first places many borrowers have gone to address their PPI disputes.
Currently, the Financial Ombudsman Service is taking on new employees to deal with the growing number of people who have disputes about the PPI charges to their loans. Despite the unprecedented levels of complaints, currently reaching over 5,000 per week, the number of people who might have been taken advantage of may be ten times the number that are complaining now.
This is because the PPI abuses were so broad and massive, yet subtle in their effect that most borrowers are generally not aware that they have had money taken from the illegally. However, this scandal has now become so widespread that people who are currently unaware are now rechecking their loan documents and taking their complaints to the Financial Ombudsman Service.
Currently, the largest banks in Britain have allocated over 12 billion pounds to cover the disputes from the PPI scandal. The Financial Ombudsman Service will handle many of the PPI complaints from customers who believe that they have been taken advantage of by this process over the years.