Last week was fairly quiet for PPI stories. Still haven't heard much regarding the Judicial Review and thankfully, we are continuing to see a lot of claims being paid out. The advice is still to make a claim regardless of the Judicial Review as soon as possible.
It was suggested that as a result of Payment Protection Insurance misselling, the levy which the Financial Services Compensation Scheme has apportioned onto the industry has caused a 70-fold cost increase for the insurance intermediary sub-class.
The BIBA head of compliance and training Steve White said: “The misselling of PPI by credit brokers has caused a 70-fold increase in FSCS levies over the last three years. A firm that paid £3,000 three years ago is now being faced by a levy demand this summer of £210,000."
These increases are particularly large for the smaller intermediary. A system which fails to apportion the levy on risk (insurance mediation) is grossly unfair to those advisors who never sold PPI. The sooner the system can be made fairer, the sooner certain aspects of the industry can burden the cost of what was a very turbulent area of selling.
Banks have been accused of selling homebuyers life insurance at the sale of the mortgage which was unnecessary and expensive. Life insurance sold with a £200,000 mortgage can cost up to £300 a year more with some high street banks compared with separate insurance from a comparison website.
It is normally the case that basic level life insurance is sold with a mortgage. The borrower pays the same sum every month and the insurer agrees to repay the mortgage if the borrowers dies. The insurance has echoes of PPI misselling in that it could be sold to single people who had no requirement for it, or added an expensive extra cost to the mortgage loan. We would always prompt individuals to shop around for the best deal they can find on the market rather than settling on the first quote from their mortgage lender.
If you think you have been mis-sold Payment Protection Insurance Policy, do not hesitate to contact us via www.ppireturn.co.uk
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