If you are a business owner who had taken out a business financing, you might also be mis-sold payment protection insurance.
According to a report by JMP Partnership, insurance policies designed to repay business loans in the event of a certain number of missed repayments or bankruptcy were mis-sold to many UK business owners.
It said that about 95% of its successful claims against Lloyds Banking Group’s Commercial Overdraft Repayment Insurance (CORI) and Business Loan Repayment Insurance (BLRI) policies have come from many small business owners who had taken a loan or any business-related financing in the last few years.
The mis-selling was presented similar to the manner PPI was presented on personal financing and mortgages. Owners were informed the policies can increase the chance of loan release during the time of application. Some found it within their receipts and believed it to be additional service costs.
In one of its cases, JM Partnership said more than £50,000 was collected for Mr and Mrs C. The business owners had a CORI, BLRI, Accident Protection Insurance, and PBS fee from Lloyds without their approval.
These new revelations can inflate the £40 billion PPI bill and congest the already-overwhelmed PPI claims pipelines. It can also mean more trouble for the average consumer who needs to make a claim for payment protection insurance policies before the August 29, 2019 deadline.