PPI claims are still being issued at alarming rates all throughout the UK. For those not already in the care of PPI claims handlers, a PPI claims guide will help you understand the process. For those totally unfamiliar with the ongoing PPI scandal, we’ll take a little time to review the issues at hand.
Several years ago, customers of banks like Lloyds and Barclays started to notice that money was being drafted every month for a service they didn’t remember signing up for. Of course, these individuals did not know that the events that were occurring in their individual banking accounts were also happening to other customers. Each customer thought that she was a unique case. Only later when people started talking online and spreading their stories through the news did the truth start to come out.
Large banks had been colluding with insurers in an attempt to sell more Payment Protection Insurance. Not an illegitimate form of insurance on its own, Payment Protection Insurance (PPI) is meant to insure against the possibility that a loan borrower would one day be unable to make his or her monthly loan repayments. It’s insurance that comes in handy in the event that a borrower’s job might be lost or an injury suffered.
Even though PPI is a fine insurance form on its own, the people who started filing PPI claims did not want it. After some investigative journalism and legal demands by solicitors and representatives, it became clear that these PPI accounts had been initiated when various customers signed up for mortgage, auto, and other loans.
How Was So Much Insurance Fraudulently Sold?
The insurance agreements were buried within the pages of lengthy and complex loan documents. If you’ve ever had to sign your way through one of these documents, you know just how much text is present on these pages, and how many dozens of signatures you must scrawl out before you get the money you’re asking for.
Most people rush through these agreements, assuming that the contract they’re signing represents the exact agreement they were hoping to enter into. In the case of the PPI scandal claimants, this assumption did not bear up under reality.
The PPI scandal is still being worked out, in a number of pending cases all through the European continent. It’s a lesson learned for the plaintiffs, and for people who didn’t get tied down to PPI.
Learning Lessons from the PPI Scandal
Even if you are not one of the unfortunate people who found their finances being drafted month after month to pay for unwanted insurance, you can still learn lessons from this event. Banks are generally secure, and they generally act in the interests of their customers. But this is not always the case.
It’s important for all banking customers to demand excellence from their banks, and to always keep track of what is going on in their accounts. Missing money, unusual fees, and charges for unfamiliar services are all signs that something is fishy in your bank. Act quickly, and you should be able to resolve the problem without the difficulty of the PPI scandal.