A couple who were sold Payment Protection Insurance (PPI) alongside a personal loan have been awarded £27,000 by the Financial Ombudsman Service after being led to believe that the PPI was compulsory. First Plus were ordered to pay the money, after the couple rejected an earlier offer of £8,000 from the company and pursued the claim with a financial claims handling company.
First Plus failed to assert that the £25,000 PPI was optional, and also failed to inform the company that they were entitled to search for a better deal. They were also told that they could claim the cost back after five years. The cost of the loan was included in the cost of the loan repayments, inflating the interest rate on the loan.
Upon turning to another bank as they struggled to meet the repayments on their £100,000 loan, the couple learned that the cost of their PPI was far higher than comparable policies. In addition, as the couple had employment cover, it appeared that the PPI policy was unnecessary anyway.
One of the couple said, ‘We were worried sick about the debts and I am appalled by our experience of the financial services industry. The banks are desperate to throw money at you but then bamboozle you over the phone.’
Couple Awarded Compensation After Being Sold PPI Alongside Loan
Couple Awarded Compensation After Being Sold PPI Alongside Loan
Mon, 15 Jun 2009
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