For years it has been common practice in the real estate industry to sell a house, arrange for the mortgage, and then at the closing table the buyers are hit with a bunch of unexpected and so-called necessary extra costs. This awful moment of truth puts a lot of pressure on the buyers to just agree to everything and sign the papers at closing or risk losing the house that, in their mind, they have already bought.
One of these extra charges has been PPI (payment protection insurance). Come to find out, most of the PPI policies were missold to people, and when the buyers tried to file claims under the PPI, most were rejected as invalid claims. So in effect, these PPI insurance policies were just another source of revenue for the big banks, who were already getting their share of profit from the outrageous interest rates of recent years.
In the U.K., people are now realizing this unfair practice and are fighting back. If you think that you have been a victim of Missold PPI I urge you to contact your federal congressman and senators and make them aware of what our neighbors across the pond are doing to stop this. All of this deception and pressure is what is causing the housing market and mortgage company troubles now. It is a shame so many people have to suffer the loss of their homes before the legislative people who are supposed to protect us will take action.