Tips given for PPI claims

Friday, February 5 2010

Consumers needing to claim back money their bank has gained from an unfair selling of payment protection insurance (PPI) have been advised how to do so.

Belmont Thornton revealed that two million people in the UK have been sold the insurance policies - which help borrowers meet repayments if they are unable to make them - even if they do not need or cannot use the products.

Sarah-Jane Allen, customer service manager at the firm, said that if the full costs of PPI were not explained at the time of the sale, or if it was not made clear that the insurance may not cover the full term of the loan, then a claim can be made.

She urged those who think they might be eligible for a monetary return due to mis-sold PPI to take their claim to the Financial Services Authority, which has successfully fined banks guilty of malpractice.

Credit broker LifeSearch recently told the Times that income protection is a much better insurance option than PPI as it will pay out for any necessary costs for as long as the policyholder is unable to work.