Increase in complaints about loan insurance
Official figures that have been released by the Financial Ombudsman Service have shown that the level of complaints relating to loan insurance in the UK have been shooting up.
Officials from the FOS have said that they are dealing with around eight hundred complaints every week in connection with loan related insurance in the UK, and that the number of complaints that were being upheld was unprecedented. The complaints are in relation to Payment Protection Insurance, or PPI, which is sold alongside loans, but sweeping changes are soon to be enforced with regards to the sale of this type of cover.
The PPI cover that is sold alongside loans is designed to cover the policyholder for repayments for a specified period of time in case they are unable to make repayments due to sickness, redundancy, or accident.
However, consumer campaigners and various other groups have long since criticised the cover because it is costly, has been widely mis-sold, and with single premium PPI is added to the loan, thus resulting in the policyholder also having to pay interest on the cover as well as on the loan itself.
A spokesperson for the FOS said: “It is still the single biggest source of complaint, amounting to about a third of the total. We are upholding about 90% of the cases we deal with, and with one firm 100% of the cases.”
According to officials there are often many restrictions with regards to policyholder’s claiming on the policy, and it is often being sold to people who can never make a claim on it anyway.
She added: “We are upholding an unprecedented number of consumer complaints about PPI. We have reported our concerns about some firms who seem to be systemically and deliberately mis-handling complaints.”
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It’s incredible how these banks who, let’s not forget, have mostly been bailed out by the taxpayers’ money, still dare to charge customers with the PPI charges.
I found out about this a couple of years ago when a relative of mine asked for a loan and was mis-sold one of these incredibly high-inflated insurance charges. Good news is: she got her money back!
She got some guys to get her money back. This is their website http://www.ppiclaimcompany.co.uk. Very good job, they did! They managed all the paperwork and legal assessment for her and she had her money back on her account in a matter of weeks.
Cheers
meri