The price of fraud
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Banks are preparing to shell out a hefty four billion pounds to people who are waiting to reclaim PPI after being cheated by the financial institutions and made to buy a policy.
The banks and bankers had told ineligible people that they needed PPI in order to avail a loan, mortgage or credit card when this was absolutely not true. Customers had to buy the policy anyway which made for missold PPI and eventually a lot of heartbreak.
PPI was supposed to protect people from missed payments in case they came down with an illness, were rendered jobless or got into a serious accident. However, the ineligible obviously could not enjoy such benefits, even though they had policies in hand. When they indeed did get badly sick, got into an accident or were suddenly laid off from work and they wanted to pick up the PPI benefits, they were summarily turned away.
The number of complaints related to PPI has gone through the roof and with an estimated two million people having been taken for a ride, the banks are preparing to makes settlements which can range from 1,000 to 9,000 pounds per person.
The waiting period to get the money back has also come down significantly from the earlier 12 weeks to the present 28 days on an average. However, for more complicated claims cases, the waiting period may extend into months.
Solicitors and claims agencies are also preparing for an expected rush of claimants and so are expanding their operations and setting up new offices.
