Millions of Britons are unaware that they
are still owed mis-sold Payment Protection Insurance compensation. The
Financial Services Authority (FSA) have revealed that £3.5bn has been reserved
for the outstanding compensation payment.
The FSA estimate that this equates to 35%
of all claims that UK citizens are entitled to.
Most of the UK population are aware of the
Payment Protection Insurance scandal due to its widespread exposure in the
media. It is the topic of coversation amongst friends and family, but millions
still remain unaware that they too are entitled to make a compensation claim.
Payment Protection Insurance was included
in many loan and credit card agreements against the will of the customer or
without their prior knowledge. This is mis-sold PPI. Those who were not
informed that they were receiving the insurance are the most likely to be
unaware of their potential financial windfall.
Thousands of pounds can be accrued by
simply re-addressing the details of the loan and credit card agreements. People
still unsure as to whether they are entitled to compensation should contact a
PPI claims specialist. All types of loans including mortgages were targeted for
the Payment Protection Scheme.
It is illegal to include Payment Protection
Insurance in loan and credit card agreements to people in full time education
or not in full time employment. Citizens who agreed loan and credit card
agreements in such a situation should comb through their agreement details to
determine whether or not PPI was included in the deal. If the agreement does
include Payment Protection Insurance then they are entitled to claim PPI
compensation.
The major UK lenders have reserved a
staggering £10bn for the compensation due for mis-sold PPI claims.
Having underestimated the total number of
claims that would be made in the UK, banking behemoth Barclays added a further
£700m to their mis-sold Payment Protection Insurance fund this month. Combined
with the £1bn reserved in 2011 and £300m set aside in the first quarter of
2012, the UK lender has now stocked £2bn for mis-sold Payment Protection Insurance compensation.
This followed Lloyd Banking Group’s
decision in July of this year to add another £700m to their mis-sold PPIcompensation reserve. The partially nationalised bank is the largest hit of all
the UK lenders amidst the mis-sold Payment Protection Insurance scandal with it
costing them £4.3bn to date.
Payment Protection Insurance was sold with
the intention to guarantee repayments can still be made even when the customer
suffers from a loss of income. However this was widely mis-sold to those who
did not want or need it.
