Lloyds TSB at centre of Mis sold PPI scandals

Lloyds TSB is at the centre of a revolt following the mis selling of Payment Protection Insurance Policies. It has since been revealed by the FSA that at least 80% of the policies sold by Lloyds TSB have in fact been mis sold.

The structure of Payment protection insurance (PPI) is to protect customers in the event of sickness, redundancy or injury. As well as covering your payments for up to 24 months leaving you with enough time to sort out finances or to find a new line of work.

This is a very useful product to have when it is sold correctly to the right people and at the right price.

However up until April 2007 it was sold incorrectly leaving consumers ripped off to the amount of £1billion per year as a result of Lloyds TSB and other banking and financial institutes mis selling their policies to their customers.

One of the main reasons for the mis selling of PPI was that the customer was not made aware that the policy itself was optional. They were being told for them to get their credit agreement agreed they would need to take out the insurance. This was one of the main complaints logged against the mis selling of PPI.

Other complaints that were made by the consumers were that they were not asked about any previous medical conditions, not asking about the line of work they were in, not being informed that the policy was being added to the credit agreement as well as informing the client that the policy can only be purchased from the company.

These are all ways of how you could have been mis sold a policy, so you should get in contact with us if you think you may have been mis sold your Payment Protection Insurance.