Banks discover a new way to pay for their PPI Claims
In spite of the bank's decisive hammering which they suffered in the courts regarding the Payment protection Insurance (PPI) scandal, sources from inside the Financial Ombudsman Service (FOS) have revealed that a fresh mis-sold insurance catasrophe may occur soon.
The FOS have published data about the claims which they have been handling over the previous twelve months, which uncovered that grievances over specialist insurance products spiked 66% in that time frame.
Specialist insurance plans are frequently added on as a benefit in packaged bank accounts, which consumers must pay for They include protection for items such as mobile phones or travelling overseas.
As with the PPI scandal, people are discovering that the protection is often excessively restricted and that in most situations they are unable to slap on a claim .
A high number of the complaints state that omissions for the plan were not explained properly, in certain instances making the policy worthless to particular consumers, and other people have reported that they were forced to make larger payments for the insurance than if they had been with another broker
Issues have been called out that the banks are still knee-deep in offering these policies irrespective of whether or not they are a good deal or suitable for the requirements of their customers,which is comparable to the problems with regards to Payment Protection Insurance.
Indeed, the banks have readied themselves to push up sales of these packaged accounts, because of their failure to win the PPI case in the courts.
With more than ?5 billion in PPI claims anticipated to be given out as PPI compensation, most large banks are searching for some way to reclaim their losses, suffered from having to pay out PPI claims and many bank insiders have said that a severe cut in the amount of free bank accounts made available to consumers may be the banks way of plugging this gap.
It seems that the banks have refused to learn their lesson, despite being forced to pay out billions in PPI compensation to thousands of people making PPI claims and they seem intent on making money by whatever means nessissary.
Indulging on with these needless financial products, may result in the banks suffering another financial hammering, perhaps bigger than the PPI claims that they have been forced to dish out.
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