Sneaky banks are siphoning off thousands of pounds owed to victims of loan insurance mis-selling — and using it to square unpaid debts instead. Banks and building societies are depriving borrowers of the right to choose how they use refunds for mis-sold payment protection insurance (PPI). As many as three million people are owed an average of £2,750 each after PPI was stealthily ratcheted on to their credit cards or loans.


The insurance is supposed to cover repayments in periods of unemployment or illness. But banks frequently failed to ask permission or check if a customer was eligible to claim. Some £9 billion has been set aside to repay premiums on mis-sold policies. However, in some cases the redress is being taken instead and used to pay down debt on the original loan, rather than being returned in cash...Read more HERE