PPI exposé highlights market problems

A recent edition of Tonight with Trevor McDonald featured self-proclaimed ‘money saving expert’, Martin Lewis, showing consumers how to reclaim insurance payments.

Stories of those who had been able to reclaim payments were featured, with people receiving refunds of amounts ranging from £1,675 to £12,000. Borrowers claimed that when taking out loans, they were told that they had to add PPI as they needed to be protected.

Reports included an ex-banker who claimed he added it without consulting a customer, and was told that ‘the less said about it, the better’. The Financial Ombudsman Service was reportedly ‘seriously concerned’, and has seen complaints treble. It claimed that sellers must get it right ‘for the sake of the customer’.

Lewis instructed consumers on how to reclaim by firstly writing a letter, explaining the details and how they felt that the policy was mis-sold to them. If this was denied, he instructed consumers to threaten to report the seller to the Ombudsman and if it still didn’t relent, to go ahead and report it.

Lewis said: “Many people have been mis-sold, so you could be able to reclaim thousands of pounds on policies. Not everyone has been mis-sold but you should check. This is the perfect time to try and reclaim, as it can mean big bucks.”

Simon Burgess, managing director, British Insurance, said: “This will provide a lifeline for those who have been mis-sold, but it could have catastrophic effects for the industry.”

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