Dave For Ohio

Payment Protection Insurance is a product that can be offered with any financial service i.e. a mortgage or credit card, many consumers in the UK voluntarily purchase it with a service each year as protection against loss of employment, health issues or financial hardship. Now many clients are making PPI claims to claim back some of the money which they have paid to the banks.

Banks aren’t obliged to offer this service but if they do they are required to ensure they understand the background of the customer and are certain the PPI would cover them in the unforeseen.

Many Banks are profiting from this in one of two ways, the first is to allow the customer to choose to buy PPI with no persuasion, this means they can offer them any product and it doesn’t necessarily have to be appropriate for that customer.

The cover they buy could insure them for the wrong value of their financial service and in most instances if the unforeseen does happen, they are not eligible for the insurance. This has left thousands of customers in financial ruin when not being able to pay back a loan after an accident or cover their mortgage when they have been made redundant.

If that wasn’t sneaky enough the Banks can exploit loopholes allowing them to tag PPI on to a financial service without even telling the customer, they may not notice and will not likely need to claim. Even if the customer finds them self unable to pay their loan, the bank will not advise them to use their PPI unless prompted.

This kind of scamming has accounted for almost £1bn profit for the UK banks in the last year and with the number of unemployed remaining high this figure is likely to increase. It has reportedly affected over 8000 families in the UK in 2009. Many families are seeking compensation to claim back their PPI payments.