LATEST NEWS ON PAYMENT PROTECTION INSURANCE CLAIMS

Added: (Thu Oct 08 2009)

Pressbox (Press Release) - Payment protection insurance has been sold on the back of credit cards and loans with the promise of payments being maintained following redundancy,unemployment and illness. Whilst nothing is wrong in principle with this type of insurance, the way it has been sold - or more particularly MIS-SOLD has prompted a belated reaction from the Financial Services Authority, the courts and thousands of aggrieved claimants.
But the floodgates for claims have opened further because of a number of crucial developements.
The FSA have over a course of time imposed substantial fines on some of the big hitters in PPI. Alliance and Leicester, G and E Capital and EGG have felt the impact of such financial penalties but there have been many more, large and small. The message is clear. Where policies were mis-sold, all the premiums paid, together with interest and costs must be repaid.
Recently, following an enquiry into the sale of these policies, the insurers and banks were debarred from selling the insurance at the same time as the loan. Under threat, Barclays are challenging that decision. This is indicative of the insurers feeling vulnerable, and they are retreating. Eually as worrying, when faced with legitimate claims, there is evidence that the insurers are prevaricating and using whatever delaying tactics they can use at their disposal.
Now there has been further trouble in store for those same comapnies with a recent County Court decision in South Shields. The learned Judge held that the commissions earned on selling the policy had not been disclosed and this fact alone made the policy unenforceable. This is yet anothe example of the Courts finding against the Insurer and opens the floodgate further for all those who have now, or have ever had, Payment Protection Insurance.
Milton Firman.
Legal Adviser to Swift Claim 0845 388 0938