Who Cares About Ppi?

Many people have now heard of the Payment Protection Insurance (PPI) scandal and have begun claiming for PPI refunds from banks. However, while the scandal has had much news coverage, particularly over the past year, there are still people who have yet to make a claim for money that was unjustly taken from them by this corrupt banking practice.

A person may think they don't have any power over what the banks do with their money. For instance, banks seem to have this ubiquitous control over how customers are treated- such as dictating the amount customers are fined for going over their overdraft limit or managing how credit card charges and interest rates are governed and applied.
The banks are in a position of power over their customers, held there by their professional knowledge, their reputation and the trust people place in their services.

Because people don't think they have any control over much of the way banks do business, many do not pay attention to news about them, particularly since many headline-worthy stories to do with banks are usually isolated incidents involving a select few individuals who have been scammed or duped into losing their money.

As it turns out, there has been a momentous issue that has affected millions of people who should most definitely pay attention to what is going on.
Consumer watchdogs, like the Financial Services Authority (FSA) and Which?, are in place to protect consumers from banks which pull the wool over their eyes by implementing unscrupulous banking practices which can hinder a customer's financial circumstances.

They are there specifically to regulate financial institutions so that any dubious or illegal activity is found out and dealt with and they have done their part to uncover the PPI scandal after responding to a number of complaints by hard done by customers.

Understanding PPI
Payment Protection Insurance was, and continues to be, a form of cover that is used to help people who have taken out a mortgage or loan, or applied for a credit card from a financial institution. While incredibly useful in certain cases where they were sold to customers who were eligible for the cover, PPI has become a highly controversial issue as it has in a majority of cases been completely mis-sold.

Mis-sold PPI has been a dominant issue for banks which have now had to concede that they are liable for any mis-selling of PPI that occurred at their branches. Millions have been affected and PPI claims have shot through the roof over the last year and will continue to be a burden on the banks for a few more years to come as more and more claimants step forward.

PPI complaints sky-rocketed in 2011 when the High Court Ruling in April of the same year found that banks were indeed liable, and were told to seriously deal with the matter - given the job of informing customers who were victims of PPI mis-selling and told to deal with claims in a fair and efficient manner.

Despite numerous people coming forward with PPI complaints and claims, many others are still unaware of the issues surrounding PPI mis-selling, tired of hearing of financial matters and banking problems that have been afflicting the country since the recession began.

However, this isn't just news that affects only a select few - the banks have had to set aside billions of pounds to repay customers who they either contact, or who come forward to reclaim PPI that was sold to them despite being ineligible for the policy in the first place.

So far, they have had to pay back over a billion pounds to aggrieved customers and it could reach a figure of £9 billion when the whole situation is over. No aggrieved consumer should delay in claiming back what is rightfully theirs - the banks should not be allowed to keep what they had no right to take in the first place.

By: BTLewis.

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Bryan Lewis has been following the PPI scandal for some time, writing for one of the UK's leading claims management companies.