British consumers owed £1,000s in latest finance scandal

Millions of British consumers who took out insurance to protect loan, mortgage and credit card payments in good faith are now waking up to the fact that their cover is worthless and over priced. Banks and credit companies have been making bumper profits on the sale of Payment Protection Insurance (PPI) over the last few years. However, non-specialist sales of insurance policies by target seeking sales people have resulted in many people buying exorbitant and inappropriate cover.

Consumer finance expert Matt Whiting of Claim 2 Gain said: "The mis-selling of PPI policies threatens to be the biggest consumer issue faced by the finance industry since the mis-selling of endowment mortgages. The fact that the FSA is threatening to heavily fine companies who continue to fall foul of PPI sales guidelines is indicative of the scale of the problem. It also is a sure sign that there are many consumers nationwide who will have a valid claim for refunds and compensation."

Explaining the extent of the problem, he said: "Most people in the UK have one or more forms of Payment Protection Insurance (PPI). The policies are sold alongside mortgages, loans and credit card applications on the basis that they will cover the minimum payments in the event that you are unable to do so due to sickness or unemployment."

"Unfortunately, many of these policies are worthless. The FSA has uncovered countless examples of mis-selling, with consumers being badly advised and encouraged to purchase needlessly expensive policies."

Banks make more than £5 billion a year on the sale of this product, but most claims made on PPI policies are refused on the basis of undisclosed pre-existing medical conditions. "Put simply, the sales advisor should ask about any pre-existing medical conditions and tell the customer at this point that they might not be covered. However, there are instances where this is glossed over in the speedily completed PPI application process, meaning that the insurer is unlikely to pay out and the customer is completely unaware," explained Matt.

Anyone with a PPI insurance policy should take Claim 2 Gain's quick online PPI claims test to see if they have been wrongly advised. If the test confirms mis-selling, the applicant could reclaim £1,000s. For more information, visit www.claim2gain.co.uk or call 0845 618 9070 for immediate advice.