In recent months, millions of consumers have been filing claims for mis-sold PPIs.
A PPI is an insurance policy that is attached to loans, mortgages and credit cards. If a consumer is unable to work, the PPI will take over the payments. However, millions of people were taken advantage of.
It is estimated that 90% of all PPIs were mis-sold. To date, over 20 million PPI policies have been sold. With the mis-selling of PPIs, many financial institutions are being inundated with reclaim applications. In 2011 alone, £215million in payouts has been dispersed. Of the £215million, £102 million was repaid in the months of May and June. The average claim has a payout of £2,500. Banks are setting aside billions of dollars to settle with consumers. Lloyd Group alone has set aside £3.2billion for refunds owed to customers. If a consumer believes they were mis-sold a PPI, they are encouraged to contact their lending institution.
For More Information On PPI Go to PPI Freedom