Carrington Dean Responds to a Rise in Payment Protection Insurance Complaints

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A recent rise in complaints to the FOS has confirmed ongoing disputes against unfair banking from financial firms in the UK. Carrington Dean advises customers on their next move.

In early 2010 The Financial Services Authority (FSA) welcomed claims against lenders who may have mis-sold insurance policies to customers. Payment Protection Insurance was issued to safeguard the borrower from late or non-payments due to illness, accident or job loss. Debt experts Carrington Dean have stated that this led to higher re-payments and added interest, which put borrowers at risk of debt.

The Financial Ombudsman Service (FOS) has revealed a record amount of complaints during the first half of 2010 against financial firms and high-street banks. The report has highlighted areas of concern with insurance taking in more than half of the complaints over general banking and lending (FOS, January - July 2010).

The British Bankers' Association has recently announced a decision to seek a High Court judicial review of the findings by the Financial Services Authority (FSA), which could potentially lead to blocking millions of pounds in compensation to customers. This comes as banks including Lloyds TSB, Halifax and the Bank of Scotland have threatened to put customer claims on hold.

Yet recent investigations by the Office of Fair Trading (OFT) are in support of complaints against the purchase of PPI and encourage customers regardless of their bank’s stance to seek advice.

Carrington Dean was approached by Mr C (whose name cannot be revealed for legal reasons) to investigate whether his bank had mis-sold policies on two accounts he held with them. A claim of £7,845.57 has been calculated followed by a total of £846.93 across both accounts. The highest claim Carrington Dean have made on behalf of a customer is a staggering £12,000.

Carrington Dean can provide help to those who have been wrongly sold Payment Protection Insurance on loans, credit cards and mortgages if the following apply:

>Customers were not told that the Payment Protection Insurance was optional
>Customers were led to believe that the application for credit would be rejected if the insurance was not taken out.
> The policy exclusions were not explained either before or at the time the insurance policy was taken out.
>The customer was suffering from a medical condition at the time of the policy and was not made aware of the specific exclusion which relates to pre-existing medical conditions.
>The customer was self employed / unemployed / in temporary employment / on a fixed term contract/retired at the time the policy was taken out and was not made aware of the specific exclusions relating to unemployment cover.
>The customer was over the maximum age covered by the payment protection plan.
> It was not explained that the policy premium would be paid upfront as a single premium and would be added to the debt and attract interest.
> The expiration date of the policy was not made clear to the customer when they were sold the Payment Protection Insurance.

The trusted debt experts can determine if the borrower is entitled to a refund of any premiums paid plus interest and statutory compensation.

For additional information about the material that is the subject of this news release please contact Stephanie Stern.
About Carrington Dean: Carrington Dean is an experienced debt solutions company based in Scotland and is regulated and duty bound to give customers the best financial advice.

Contact: Stephanie Stern, Carrington Dean 0141 221 2323 / 0141 227 2194,


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Andrea Gardner
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