THE CENTRAL BANK has named six institutions which it is investigating for mis-selling payment protection insurance (PPI) to customers who were ineligible to make claims under the policy.
Bank of Ireland, Allied Irish Banks, EBS, Permanent TSB, Ulster Bank and GE Money have all been ordered to launch independent reviews of PPI sales to establish the extent of the problem – and to pay restitution to customers who were missold the policy.
A seventh institution asked not to be named by the regulator, according to the Irish Times.
PPI pays a policy holder’s loan or credit card repayment if they become ill or unemployed. However, PPI was sold to thousands of people who were ineligible and who would be unable to claim under the policy if they had difficulty regarding employment or residency status.
Customers of the firms undertaking reviews have been advised that they do not need to do anything at this point, and will be contacted directly by their PPI seller in relation to the review process, RTÉ reports.
The Central Bank has warned the public about management companies that make claims on behalf of customers – saying that such firms can charge significant fees.
The banking regulator is continuing to investigate PPI sales by other lending institutions.