PPI Judicial Review

Wednesday 20th April, 2011 

Today, 20 April 2011, the courts have found against the banks, after they tried to challenge the FSA over news rules on how Payment Protection Insurance should be dealt with.

PPI is one of the biggest ripoffs in the last 10 years. People were being sold payment protection insurance without regard to their circumstances. PPI was a type of insurance sold alongside loans to insure payments are made if the borrower is unable to make them due to sickness or unemployment. In many situations the insurance was added to the loan making it even more expensive.

Unbelievably PPI was sold to people who were excluded in the policy's T&C's. So when it came to claiming against the policy the PPI provider would decline payment as they were excluded by its T&C's! This type of sharp practice should have been addressed much more quickly that it has been done but that's another matter.

The BBA, the British Banking Association, considered seeking a judicial review of the the FSA's rules but on the 9 May they confirmed that they were not going to appeal the decision. This opens the doors for all those who have been misold PPI's to recover their money.