The High court issued a ruling to the British Bankers Association (BBA) on 20th April that the Payment Protection Insurance (PPI) that the banks sold bundling them with loans was mis-selling and that the banks should pay back its customers. In many instances, the customers did not need any payment protection but were coerced into buying such unwanted payment protection insurance policies by the banks. As many customers were keen to get their loans, they had little choice but to accept what the banks forced on them i.e. the loan and payment protection insurances.
Lloyds Banking Group was the first to lead the pack. The announced last week that they will be not appeal against the ruling of the High court and are setting aside £ 3.2 Billion to compensate its customers for missold PPI. Other banks have hence followed suit. As of date, the situation with the various lenders is as follows:
RBS has set aside £ 850 Million
Barclays have set aside £ 1 Billion
HSBC have announced provisioning of £ 269 Million for mis-sold PPI claims
Santander is the only major high street bank not to support the judicial review. Its subsidiary Alliance & Leicester acquired by Santander acquired in 2008, was one of the first lenders to be fined. They were fined £ 7 Million in 2008 by the Financial Services Authority (FSA), the largest ever fine related to PPI mis-selling.
Stuart Boseley, Director of Best Insurance commenting on the latest provisioning of the banks said that, ìBest Insurance is really pleased that the banks have accepted their folly and are compensating its customers for the misspelling that has been going on rampantly for several years. It has been a long fight and at last respite for the customers.
Best Insurance has a wide range of payment protection covers and income protection insurance. The good news is none of these are bundled and completely upto the customers to buy it. Many customers want protection to pay loans or just maintain their lifestyle if they become unemployed or redundant. Best Insurance’s redundancy protection insurance is one of the market leading payment protection covers.
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