The banking industry has given up their legal fight over the mis-selling of payment protection insurance (PPI) and will not be appealing the Judicial Review they lost on 20th April 2011. The British Bankers Association (BBA) has stated they do not intend to appeal after losing the court challenge, meaning that the new rules on mis-selling will be implemented accordingly.
This decision is welcomed by the Financial Ombudsman Service whereby last month the High Court ruled that the banks had to comply with the new rules of the Financial Services Authority (FSA), which require them to go back over all their past sales to review where mis-selling has occurred.
Leading high street bank, Barclays, has stated it has set aside £1bn in order to distribute compensation whilst HSBC has put aside £269m. This may now start to see customers trust and confidence in the banks restored in the hope that Banks will start to compensate the estimated several million consumers, fairly and promptly.
PPI policies are supposed to protect and cover consumer credit/loan repayments should they fall ill or lose their job – however these policies have been mis-sold for a number of years meaning that people were paying over the odds for a service they either could not claim on, or were not even entitled to in the first place- due to being self-employed or a student, for example.
In some cases we are learning that borrowers were not even aware that had taken out the PPI policy or they were told they could only receive the loan/credit agreement on the condition that they purchase PPI alongside it.
If you think you may be eligible to claim back your PPI www.realclaims.co.uk will do all the hard work for you whilst you reclaim the money you are legally entitled to.
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