PPI couple gets £27k payback

11/06/2009

A huge award has been given to customers who were mis-sold Payment Protection Insurance (PPI).

The Suffolk couple has been offered £27,000 by the Financial Ombudsman Service, which settles disputes between customers and service providers.

It was revealed in the Ombudsman's investigation that the pair were offered a £100,000 top-up loan by a lender, but only if they took out £25,000-worth of PPI as well.

This happened despite the rules stating that the insurance - which covers customers' debt repayments if they suffer a sudden loss of income - is completely optional.

The couple took out the loan with the PPI, but then struggled to meet repayments and began to dispute the insurance's costs with their provider.

Sally Bowyer at BrunelFranklin.com, the claims specialists who helped the couple with the case, commented: "We see cases every day where people have been led to believe that lending is dependent on taking out the bank's insurance, policies are added automatically or sold when the cover is unsuitable, or in some cases worthless.

"People who believe they may have been mis-sold PPI should make an appropriate claim and those responsible for shoddy practices should be held to account."

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle,

Regional Debt Advice; Debt Help Suffolk,

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