Armed Forces Missold Payment Protection Insurance
It has been recently revealed that Lenders such as Lloyds TSB, have been misselling Payment Protection Insurance (PPI) to the British Armed Forces for many years. This has been the case even though the banks knew that the insurance was invalid and completely useless for soldiers who had taken out credit agreements such as credit cards, loans and mortgages.
For those serving with The Armed Forces, PPI is covered by employers, meaning that should sickness, injury or redundancy occur, soldiers can receive payouts to cover debt such as loans, mortgages or credit card payments. Lloyds TSB is said to have known that policies were useless but continued to sell it to thousands of individuals seeking credit. In addition, the missold PPI was often pushed upon individuals as being compulsory when it is entirely optional.
Lenders often did not explain the terms and conditions with their customers and authorities have really cracked this year on PPI misselling as a result.. The problem is that some very specific points regarding PPI can easily render the policy completely null and void. Meanwhile, the financial institution were also said to omit taking details of medical backgrounds from customers; a vital component of offering PPI due to present conditions often invalidating the very policy individuals are being sold.
Whilst knowing the options behind taking out PPI, Lloyds TSB were said to often inform personnel from The Armed Forces that credit applications were never approved without PPI. However, this is a complete falsity as holding PPI has no affect on whether an application for credit is successful or not. After a Judicial Review in April 2011, it was found that many banks have been misselling PPI, often advising customers that it was compulsory when it is entirely optional. In some cases, individuals were not even told about the insurance, or told that their credit agreement request would likely fail if they did not take out some form of PPI with the financial institution.
For former armed forces personnel, or those currently still serving, checking credit agreements is paramount. If an individual can recall having taken out a PPI policy of Lloyds, or in fact any other Lender, they are urged to seek advice. Now that Lloyds and other Lenders are now legally obliged to provide financial redress to those client who have been missold it means servicement and women could be in the line for receiving thousands in PPI rebates. It the credit agreement has been taken out in the last ten years or even longer there is now an urgency to check for a possibility of having paid on a PPI policy. Moreover, for those who discover they have indeed bought a policy unknowingly, thousands of pounds could be waiting in compensation and repayments.