Thursday, March 28, 2013

Payment Protection Policies Reclaim

It was found that many borrowers have paid for payment protection policies that were mis-sold to them in some way. While the process of reclaiming from major banks like the Royal Bank of Scotland or the Halifax may seem simple, it can become more complex if the company in question has since changed hands. The once popular Egg online banking brand is one such company and while they may have sold their credit card operations and their savings and mortgage accounts it is still possible to enjoy a successful Egg PPI reclaim.

In February 2008 Egg were fined more than £700,000 by the Financial Services Authority stating that they had been guilty of persistently misselling payment insurance policies. It was found that Egg had coerced and used inappropriate sales techniques in a bid to persuade borrowers to take out payment protection policies. They were one of many lenders to have been found guilty of inappropriate sales techniques during a high profile trial and they have had to answer many claims from customers and former customers seeking reclaimed money.

The mis-selling scandal certainly wasn't restricted to Egg. In fact, many high profile lenders were caught up in the PPI case. Billions of pounds has been put aside by lenders as they have to guarantee they will be able to meet claims or face going into default. Egg did continue following this news but the Internet banking boom did eventually become bust, ultimately leading to the sale of the Egg brand.

In March 2011 Barclays Bank announced that they had agreed to purchase the accounts of more than 1 million Egg credit card holders while the Yorkshire Building Society announced that they would be taking over savings and mortgage accounts in July of the same year. This final move represented the end of the Egg banking brand and meant that Citi Group were no longer involved in the daily management of these accounts. Must be payment protection policies reclaim earlier.

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