The people who were mis-sold PPI now have the ability to file for refund claim and get it back from the bank, fairly easily. The procedure to file for claim is simple, and most of the people get their refunds in due time without hassles. This is because the banks have lost their case in the court against the consumers, who have been mis-sold PPI for years, making banks richer and taking money out of the pocket of consumers wrongfully.
The banks lost the case for many reasons, and one of the biggest reasons was that they mis-sold the policy and to the wrong people in most of the cases. The banks made billions in the process, whereas the payout of the PPI claim was just about 15 percent of what the banks were making. This made PPI one of the most profitable financial tool ever, more than the housing loans, mortgage loans, car loans or even credit cards for that matter. The charge sheet against the bank was based on mainly four important points which were that
- PPI was more expensive than it was supposed to be, which meant that it added around 20 percent to the loan repayment and in some cases, going around or over 50 percent as well.
- The clauses that were included in the fine prints of PPI were such that getting the coverage payments for PPI was made nearly impossible, even when the claim is valid and the subject is really ill or in some other emergency that PPI earlier claimed to cover.
- The courts also noted that the banks mis-sold the policy to people telling that it is essential to get the loan, mortgage loan or credit card. In many cases, customers never knew they are buying PPI as well along with the loan.
- The PPI as financial tool was clearly inefficient and most of the people never got the claim amount in time or when they needed it, sometimes making it impossible to finish the lengthy claim procedures.
These are the four main points on which the court emphasized and held banks as culprits and ordered them to refund the customers their due amount for PPI premium back, and with interest. By visiting www.ppicalculator.co.uk, you can get to know the amount you are due to get back from the bank as refund.