Many of our High Street Banks are showing the first signs of waving the White Flag over Loan Protection Premium payouts. Lloyds Bank has now decided to bite the bullet and end its continual battle against legal claims in the courts for mis-selling Protection Insurance taken out against loans and credit cards. This admission could cost the banks in excess of £9 billion to settle a Watford escorts financial expert has proclaimed.
The purpose of the Insurance was to cover borrowers against a sudden or unexpected loss of employment or sickness during the period of there loan or Credit Card cover. The major stumbling block was that many of the customers who had this Insurance sold to them would have never been able to claim and included customers with Long Term Illnesses, the Retired and those workers who only held Seasonal employment.
These ruinous policies pushed by the Banks were often very expensive and compared to independently purchased policies of a similar ilk were not cost effective. Which then bawds the question, should they have been pushed by the Banks in the first instance and more importantly should the purchasers have been informed that there were alternative and more cost effective variants available. A definite case of mis-selling banking bolt on product to an unsuspecting audience. If you can not trust your banks then who can you trust in today’s modern society.
It would now appear that the major Banking conglomerates have seen sense and the correct decision has been made in order to compensate those customers affected by this misuse of Banking facilities.
Do I Qualify?
Yes if you have been sold Insurance Protection on either a Loan or new Credit card from 2005 onwards. Check all the paperwork on loans applied for and agreed, a separate entry for PPI will appear in the loan agreement paperwork. If you have a Credit Card you should see a regular entry on your monthly statement for PPI.
If in doubt contact your lender and lodge a claim. Ordinarily you should receive a response within 8 weeks; this could now be delayed due to the impact of this back down. Good Luck in your claim.
If you have a claim which has been rejected contact the Financial Ombudsman or alternatively the Financial Services Authority for further advice and help with your claim.