Armed forces massively mis sold PPI, could cost banks £25 billion

Those who are in the Armed Forces have been massively mis sold Payment Protection Insurance (PPI) over the last 10 years by British banks. This could set banks back £25 billion to redress those who have been mis sold their Payment Protection Insurance (PPI).

However, banks are trying to set a time limit on when people can claim back their Payment Protection Insurance (PPI), this it to ensure that claims management companies cannot submit bogus claims that lead to overall costs being increased. However, the request for the PPI time limit has been met with massive opposition. Mainly from the Financial Ombudsman (FOS) who believe that the sum of £25 billion does not come close to the total profit they gained from mis selling Payment Protection Insurance (PPI) to the likes of civil servants such as those who are in the Armed Forces ( RAF, Royal Navy, British Army).

Payment Protection Insurance (PPI) is an insurance policy that is designed to cover a persons repayments in the even of injury redundancy or sickness on credit agreement such as car finance, credit cards and loans.

However, being in the Armed Forces means that a PPI policy will never be useful as you could never claim on the policy, as you a covered by your employer in the same circumstances. Banks in this and continued to sell PPI policies to those who were in The Armed Forces.

Speaking to Consumer Financial Director they shared their thoughts on how banks have mis sold civil servants across the UK ” we have worked with thousands of those who are in the Armed Forces and found that a lot of soldiers have credit agreements such as credit cards and we have found that the majority of soldiers have paid PPI at any one time. PPI is and will never be suitable for those who are in The Armed Forces as they are covered by their employers. Our biggest claim for a civil servant was £43,000 on a credit card that they did not know they were paying PPI on. ”

Banks have boasted major loses Having to set aside the huge sum of redress money for the repayments of Payment Protection Insurance (PPI). This affected stock prices across the market and found that many people’s confidence in the stock exchange had fell overall.

Banks have yet to give a full breakdown of exactly how much the PPI industry could cost overall.