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UK PPI Claims Under Investigation
The Financial Conduct Authority (FCA) in Great Britain has asked banks and credit card companies to re-examine 2.5 million UK PPI claims in which consumers were either undersold or weren’t aware they were paying for such, the BBC reported last week. The FCA believes that there are at least 2.5 million instances where it believes PPI claimants may have been mistreated. The investigation was triggered by an irregular decrease in the number of UK PPI claims that were sustained and provided reimbursement.
What are PPI Claims?PPI claims, or payment protection insurance claims, is a type of insurance that enables a consumer to repay a loan in the event the borrower faces a situation – for example, death, disability or unemployment – that hampers the fulfillment of the loan. PPI claims are also known as credit protection insurance or loan repayment insurance. With PPI claims, however, the number of claims rejected is far more often than the number accepted because each depends on the claimant’s circumstances.
The Expected Effects from the UK PPI Claims InquiryThe 2.5 million UK PPI claims is a daunting number, but the FCA feels that as financial institutions continue to improve in handling complaints, it will lessen the burned on the FCA. The FCA has mailed 3.2 million letters (with another two million expected to be sent) to consumers who they feel might have been wrongly sold PPI, but have yet to request reimbursement. Compensation from UK PPI claims has resulted in an average of just below 3,000 pounds per claim, which includes a total refund of premiums, interest paid on the premiums as well as interest that would have been paid if the consumer instead saved the money. The BBC found that seven out of 10 complaints on average have favored the consumer.
What Are the Options for Consumers?Any UK citizen that feels he/she has been wrongly sold PPI should first contact the business that sold the policy. Businesses, in turn, have eight weeks to respond. If the result is unsatisfactory, citizens are urged to contact the FCA Financial Ombudsman Service. Most of the cases are solved relatively quickly provided the proper documentation is in place. An official representing the British Bankers Association told the BBC that “Banks are committed to ensuring that where customers were mis-sold PPI they receive the full compensation that they are entitled to.”
About PPI Claims Merchant AccountsSince the PPI claims are against UK banks, UK banks are therefore opposed to issuing merchant accounts to companies that assist consumers who are seeking assistance with their PPI claim. Instabill, however, is able to provide PPI merchant accounts to these companies through their international merchant acquiring banks who are open to providing merchant accounts to these businesses because there is no conflict of interest. To find out more about PPI Claims merchant accounts, talk one-on-one with an Instabill merchant account manager at 1-800-318-2713.
About the AuthorChris O’Donnell is the Senior Copywriter at Instabill. Chris is a devout Barclays Premiership fan and connoisseur of rock and roll music. He joined the Instabill team as its senior copywriter in December of 2013. He can be reached at 603-436-1270 or at firstname.lastname@example.org.
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