It was reported on the 6th March 2012, that UK banks had been instructed to write to millions of their customers, explaining to them how they may have been mis-sold Payment Protection Insurance (PPI)
(please click here for a consumer factsheet explaining the concept of PPI)
(please click here for a consumer factsheet explaining the concept of PPI)
As the infernal advertisements being shown on TV by legal firms offering their services for compensation claims, PPI was mis-sold if the customer did not need it, want it or ask for it.
PPI, also known as credit insurance, credit protection insurance and loan repayment insurance was a product offered by financial institutions to enable their customers to continue re-paying their loan and/or credit agreements, should face any cicumstance preventing them from making the required re-payments (such as unemployment, illness etc).
The Financial Services Authority insisted that these letters be jargon free and should also:
- explain that the letter is important
- explain how they may have lost out financially and could claim for compensation.
- be written in a language, free from jargon and marketing.
- point out that there may be a time limit involved.
Meanwhile, the TV adverts and the cold calling telephone calls continue in abundance.
For example, I have received 2 calls this afternoon, both from the same company, offering to reclaim my PPI payments. Apparently they have information that I qualify for compensation and if I answer their questions, they could put in a claim for me (less the relevant costs of course).
So how does this work exactly I ask? I have not had any loans, credit agreements, credit cards etc throughout the 6 year period they are talking about, so where exactly do they get their information from?.
When I put this to them, they end the call by hanging up very quickly.
It is clear they don't have any information whatsoever and are just cold calling.
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