The Payment Protection Insurance (PPI), created by the bank to cover loan repayment and debt servicing for clients should they are not able to pay because of lose of job or contagion. This insurance policy was put in place to handle the cost of these circumstances such that the client or subscriber of this policy need not worry about their debt and loan when they are rendered incapable of servicing them after they lose their job or fall ill. This scheme has numerous and lots of benefits and mostly come along with subscription to other credit facilities from the bank. The PPI was sold separately to some clients to cover specific debts when they clients are not able to pay back themselves.
PPI MIS-SOLD TO CLIENTS
Some clients were taken advantage of by the bank and exploited, some banks didn’t deem it necessary to enlighten their client about the operation and terms of this insurance policy, some added it to their client’s subscription without the knowledge of the client , some imposed it and made it compulsory for the clients, at other times the bank said to their clients that for them to subscribe for this policy they must subscribe for any other policy of theirs such as car loan, mortgage or credit card facility.
THE PPI REPAYMENT
The bank had to compensate their clients that subscribed for this policy if they can come forward with a verifiable and complete claim of subscription, they will be paid, recently the bank refused to honor their words on the compensation by turning back some clients that are able to come with a good claim notwithstanding. The court ordered the bank to pay the compensation to clients as far as they meet the terms and their claims are verifiable, this has cost the bank billions of pounds over the years, they are paying back in bulk for it.
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All about PPI
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