Am I Entitled to More PPI?
The questions everyone is asking after the recent revelations that some customers may have been short-changed by their banks… again!
Payment protection insurance (PPI) was mis-sold to literally thousands of people across the UK and now, these customers are making their compensation claims.
After a rocky start in which the banks attempts to duck out of their compensating responsibilities, all was progressing smoothly. Until a BBC Radio 4 programme found that there were a group of people that in 2012 and 2013 that may have not had the full amount of compensation they were due.
Identifying the loophole
There is a lesser known loophole that means in certain cases, the banks, lenders and financial companies calculate the compensation amount between the cost of their policy and the next cheapest.
Neither did they include in some cases, the additional costs of the policy in compensation payments made to customers. The interest on these policies could be high, as well as fees and administration costs. In some cases, the investigation found that customers had been short changed by several thousand pounds.
The key questions, answered
- Who does it affect?
Primarily, it affects customers who were sold single premium PPI policies and were compensated during 2012 and 2013.
- Can you claim more if you have already received a settlement?
You may be able too, as again, the numbers of people it affects is significant; that is, thousands of customers as opposed to hundreds.
- What is the best course of action?
There are two ways you can deal with the situation:
- Ask the Financial Ombudsman to check you claim to see if you could be entitled to more
- Ask PPI Scotland to do the same; there could be a fee for this service
- Does it affect the customers of one bank more than another?
It seems not. The investigation found that most banks had tried this tactic and thus, it seems that if you had a single premium policy you could be at risk of being under-compensated if the policy was mis-sold to you.
And what know?
The Financial Conduct Authority have once again made it clear to all banks and lenders that customers must be put back in to the financial position they would have been in, if they had not been mis-sold the policy in the first place.
And this could apply to you! To find out more, call Payment Protection Scotland today.