The Allied Irish Bank (AIB) has written to hundreds of customers alerting them to the fact that they may have been embroiled in the mis-sold payment protection insurance scandal.
The Financial Services Authority (FSA) called for leading banks to write to customers to invite them to make a claim, ensuring their communications were jargon-free.
AIB has written to credit card customers who may have been sold the policy without their knowledge. Cases of mis-sold PPI can often involve situations where the insurance amount was tagged onto monthly credit repayments.
The letter detailed that the bank had unearthed “inconsistencies” in the sale of PPI. It went on to ask customers, “whether or not it was your intention to purchase payment protection at the time of opening your credit card account”. When the Irish Times asked the bank to elaborate on the nature of these inconsistencies it refused to comment.
One AIB customer told Pricewatch that he was sold the policy 7 years ago but had been unaware that he had taken it out. He has contacted the bank and is waiting to see how they will proceed.
In 2008 the UK’s Competition Commission investigation into PPI found that claims cover was lower for PPI (£15 for every £100) when compared with car insurance (£78) and home insurance (£54).
Personal protection insurance or PPI has been wrongly sold with loans, credit cards and mortgages by many lenders and as a result you could be owed thousands of pounds.
It is currently estimated that there are 20 million PPI policies in force in the UK, producing annual revenues in excess of £5 billion, around 50% of these being mis-sold.
If you have PPI Insurance and you didn’t want it, need it or know about it you could be owed money. You won’t get a penny unless you act now!