overdrafts

Sales of RBS Overdraft PPI (Payment Protection Insurance) has been widespread over the last ten years. RBS sold this type of PPI on the basis that if they were to let you have an Overdraft, let you extend your Overdraft limit or continue with an existing Overdraft it was important that you took out Overdraft PPI.

However, borrowers with Overdrafts were entitled to be provided with the same amount of information and choice as Loan borrowers, in respect of the PPI. However, this often did not take place

If sold correctly, PPI will ensure that your interest payments on your Overdraft are met if you are unable to work. But, all too often, the insurance was mis-sold to people who did not want it, didn't need it or could never have made a successful claim on it.

Overdraft PPI was mis-sold on an industrial scale by Banks, including RBS Bank for some time. In fact, the sheer scale of the whole episode has made PPI mis-selling the biggest scandal in UK financial history.

PPI on Overdrafts is calculated differently to that on Loans or Mortgages, which use a fixed premium costing the same each month.

However, Overdraft PPI is based on the residual balance on your Overdraft each month. A case study from the Financial Ombudsman Service (FOS) found that the insurance cost 79p per month for every £100 outstanding at the end of each month. So, if you in the habit of keeping a relatively high Overdraft balance for a period of several months, you will pay a correspondingly high amount of PPI each month.

If your claim is successful, the Lenders must repay all of the PPI premiums from the start of the agreement, plus interest. In most cases, potentially 8% interest for each year you had PPI.

To find out how much we can help you claim on your RBS PPI in 15 seconds CLICK HERE

natwest ppi news
   NatWest customer complaints rise by 75%
   NatWest PPI mis-selling bill hits 2.6 Billion
   PPI expose: how Natwest Bank drove staff to mis-sell the insurance
   Bailed-out NatWest bombarded as PPI claims see complaints soar 75% in six months
   The FCA is forcing lenders re-open over 2.5 Million PPI cases
   Natwest put me in debt to fix its £7,355 error
   NatWest and RBS fined £2.8m over complaint handling failures
   £22 Billion is set aside by Banks to compensate for PPI
   Four Million more customers may be entitled to PPI pay outs