14 November 2007
A series of court dates have been set for irate customers hoping to claim money from banks they say have mis-sold them loan insurance, Reuters reports.
Otherwise known as payment protection insurance (PPI), the controversial cover is supposed to provide a financial safety net for customers unable to make personal loan or mortgage repayments due to changed circumstances.
However, consumers' groups, along with the Office of Fair Trading, have slammed banks for employing "hard sell" tactics to force borrowers to take PPI out - or sometimes for allowing customers to purchase the cover without having realised they have done so.
Often, as the cover's premiums are added on top of the loan repayments, PPI costs can rapidly rise due to compound interest.
The report adds that 12 separate compensation claims have been lined up by claims specialists Brunel Franklin.
Managing Director Anthony Sultan told the news agency that the cases could set a legal precedent, and "open the floodgates to tens of thousands of cases".
He added: "It may take months, but we're optimistic of a positive outcome."
© 2008 Adfero Ltd
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