Broker sold PPI ruling gives hope
A court case which has been rumbling on for some time has shed some new light on broker sold PPI policies.
Many banks and lenders used brokers to introduce and set up credit agreements such as loans and mortgages for new customers.
In return for introducing potential new customers to the lender, the broker received commissions for their services.
In many instances the broker and lender would also receive a commission for selling PPI as part of the credit agreement, and this has come under intense scrutiny in the recent court case.
What is the problem?
A customer must be given enough information to make an informed decision regarding whether or not they wish to take PPI.
Along with all the other reasons for mis-sale, many of which can be found in this article, value for money needs to be considered.
It’s becoming increasingly apparent that lenders and brokers failed to disclose the amount of commission they were receiving for selling PPI.
This decision not to inform the customer of how much of the PPI premium they would pay would go to the lender and broker as commission may well have had an impact on whether the customer would deem the PPI policy as being value for money.
How much commission was being paid?
Each case may be different, and as the commissions haven’t been disclosed it will take some investigating to uncover these figures.
In the recent court case it was discovered that of the £5,780 PPI premium, a huge 72% (£4,161.60) was paid to the lender and broker by way of commission.
Therefore the actual PPI policy was worth £1,618.40 and the argument is that had the customer been aware of the commissions they would have decided that it was not value for money.
Have you had PPI?
PPI was sold on all forms of credit, such as mortgages, loans, car finance, hire purchase agreements, credit cards and store cards.
Not sure whether you’ve been sold PPI?
Our fast and comprehensive checking systems that have been set up with almost all banks allows us to find out whether you’ve been one of the millions who have had PPI.
Not sure whether you qualify? Check here to see whether you may.
Our average successful customer award is £3,332**!
Want to know how much you may be owed? Why not try our PPI calculator.
Making a PPI Claim
If you have had any form of credit within the last 25 years there’s every chance you’ll have been paying for PPI.
We’ve made claiming easy, taking the stress out of you having to deal with the paperwork, the stress, and the tactics employed by the banks to try and wriggle out of paying.
So….how do you start your claim?
#1: The first option for you is to fill in the form which can be seen on every page. By doing so, we will send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we send you with your form, we can make a start on your claim.
#2: The second option for you is to download our form, which again can be found on every page by clicking the ‘download pack’ button. Simply print it out, complete it and send it back to us, our address can be found here. Once we receive is back we’ll let you know and make a start.
Our team of experts are on hand to answer any questions you have via telephone, email or our live chat facility.
So….why wait, let’s get started!