As per the latest figures released by the Financial Ombudsman Service (FOS), the numbers of complaints made against the mis-selling of Payment Protection Insurance by the banks have increased and they have received more than 149,925 new complaints in the first half of 2011. This is 54% more than the number of complaints that was received in the previous six months. It is also interesting to note that nearly two-thirds of all the complaints received by the FOS was about Payment Protection Insurance. Apart from the Banks, complaints against the mis-selling of Payment Protection Insurance were also received against the credit card companies such as MBNA, Capital One and HSBC who share 10,000 PPI complaints amongst themselves.
For several years the banks invariably sold payment protection insurances when customers were taking a loan and there was little checks done whether the customer has any pre-existing conditions that would dis-qualify them from making a claim. Earlier in April this year, the British Bankers Association agreed to mis-selling and have hence agreed to re-pay all customers who have made a complaint.
Kesh Thukaram, Director Best Insurance commented on the rise of the number of payment protection insurance complaints and said that it is deplorable for banks which many people blindly trust to take advantage of customers in such a gross manner. Their paying claims to customers they have mis-sold is the minimum they should be doing. He however cautioned people not to jump onto the band wagon. The number of cases in the first half of 2011 that went in favour of the customers was 47% as compared to 53% in the second half of 2010 which goes to show that some people think they have been mis-sold to and are hoping for compensation that they are not eligible for.
Payment Protection Insurance and Income Protection Insurance are key in the changing landscape of the UK economy. Increasingly lowering of government support, stricter qualifying criteria for job seekers allowance, stringent vetting and reduced government benefit support for those who are long term sick means that people should cover themselves appropriately. Income Protection Insurance is one such protection where in if anyone has a loss of income due to accident, sickness or unemployment, the income protection insurance policy pays out benefit for either 12 months or 18 months as chosen by the customers.
Best Insurance has a very wide range of income protection products and they have a range of insurers who have different qualifying criteria. Best Insurance are well known for their quality support and assist customers in making the right choice of income protection insurance.
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