| Banks, PPI, PPI Scandal

PPI Mistake

It was recently revealed that banks are trying to claw back PPI compensation that was paid to victims for the mis-sold PPI policies. There are several customers who have received bills worth thousands of pounds and this is because banks have wrongly calculated their PPI payouts.

They have asked customers to pay back close to £15,000 although the original payout was made four years ago. It is not possible to estimate the number of victims that might get affected by this but surely many are at risk.

A victim can definitely contact a service provider to get a clear view about the situation as they can suggest the best solution to tackle the problem.

As a matter of fact, people were mis-sold PPI policies in a very sneaky manner which makes it all the more difficult to trace back the original policy and calculate compensation. Banks have so far paid a total of £25 billion as compensation to millions of people who were affected by this scandal.

Banks have now realised that they may have made calculation mistakes in these payouts. Additionally, the number of people applying for PPI claims is increasing day-by-day.

Few years ago, a couple received compensation amount of £14,739 by the financial institution which had mis-sold a PPI policy to them. The couple invested the compensation amount into their business. Recently, the couple received a letter stating that they will need to pay £3000 to the same financial institution from which they had received the compensation. When they enquired about the situation they were told that there was no compensation that was offered to them from the institution.

In the end, the truth was revealed and the bank had to pay £7000 to the couple. The banks miscalculation had created a lot of confusion and stress for the couple.

Yet another incident occurred with another individual wherein he was asked to repay £3,634 of £5,704 that he had received as compensation from the bank.

This brought light to the fact that numerous people were mis-sold PPI policies and those victims were not aware about the policy being mis-sold to them. PPI policy was mis-sold along with loans, credit cards and mortgages since the nineties.

If so many people had not complained about mis-selling of policies and demanded compensation, the hard earned money of numerous people would have been lost.

Today, with the deadline declared there has been a tremendous rise in number of people applying for compensation. Additionally, FCA is planning for a huge advertising campaign to make more and more people aware about this situation.

The financial Ombudsman has been of great help to victims by offering them timely updates on the latest changes in the procedure. Besides, there are several other claim management companies which played a crucial role in guiding individuals to earn back their hard earned money.

However, the refund mainly depends on the payments you have made during the tenure of policy and an additional interest rate of 8 percent.

Check now for FREE
Share this post: