Are Interest-only loans the next PPI?

18 Apr

We’re all familiar with the much maligned payment protection insurance scandal with banks needing to set aside billion of pounds to pay back the general public, in what was a highly damaging and humiliating scandal for lots of monetary companies.

Customers were unnecessarily sold this kind of insurance and were often mis-informed as to the nature of the product, most of the customers did not require or need this kind of insurance.

Now financial experts are claiming that interest-only loans will be a financial scandal of similar proportions.

These loans, which include the borrower accepting to pay off the interest each month without the capital quantity.

Martin Wheatley. Previous supervisor of the Financial Solutions Authority (FSA) declares that these interest-only loans are a “ticking time bomb”. The FSA is typically held responsible for dealing with concerns against major financial services and controls the regulation that control the behavior of lending services.

The FSA runs separately from the government, although its members are appointed by the Treasury.

Many members of the public might be uninformed that they are entitled to a case if they were mis-sold this kind of loan or mis-informed about the process.

As a result lots of cases management companies have actually switched their focus from the mis-selling of PPI to the mis-selling of interest-only loans. Claims management business declare that customers/borrowers were not checked appropriately and it was not clarifies that clients would have the ways to repay the debt.

Cases management services are set to face an increase of cases this year as many clients may seek further guidance on the topic, it’s plausible that many people might have the chance to claim significant quantities of cash must they have a case.

For more information on the mis-selling of mortgages and to see if you may have a claim take a look at

http://www.mis-sold-mortgages-uk.co.uk/

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