The PPI Claim Circus Goes On

It was reported on the 6th March 2012, that UK banks had been instructed to write to millions of their customers, explaining to them how they may have been mis-sold Payment Protection  Insurance (PPI)  
(please click here for a consumer factsheet explaining the concept of PPI)

As the infernal advertisements being shown on TV by legal firms offering their services for compensation claims, PPI was mis-sold if the customer did not need it, want it or ask for it.

PPI, also known as credit insurance, credit protection insurance and loan repayment insurance was a product offered by financial institutions to enable their customers to continue re-paying their loan and/or credit agreements, should face any cicumstance preventing them from making the required re-payments (such as unemployment, illness etc).

The Financial Services Authority insisted that these letters be jargon free and should also:

• explain that the letter is important
• explain how they may have lost out financially and could claim for compensation.
• be written in a language, free from jargon and marketing.
• point out that there may be a time limit involved.

Meanwhile, the TV adverts and the cold calling telephone calls continue in abundance.

For example, I have received 2 calls this afternoon, both from the same company, offering to reclaim my PPI payments. Apparently they have information that I qualify for compensation and if I answer their questions, they could put in a claim for me (less the relevant costs of course).

So how does this work exactly I ask? I have not had any loans, credit agreements, credit cards etc throughout the 6 year period they are talking about, so where exactly do they get their information from?. 

When I put this to them, they end the call by hanging up very quickly. 

It is clear they don't have any information whatsoever and are just cold calling. 

You would have thought that the directive to banks to write to their customers, who they believed might be in a position to claim, would have at least slowed the commercial bandwagon down. But not a bit of it, it seems.

So whilst the British banks are at least resigned to paying out what is due, it is truly encouraging to see the integrity of some of the advertising, so-called legal companies,is as high as ever!