Reclaim Mis Sold PPI Against Northern Rock
Originally a building society that was founded in Newcastle-upon-Tyne back in the 19th century, Northern Rock became a bank in 1997 and embarked on a programme of rapid growth based around extensive lending. They offered loans, mortgages and credit cards, and as the lending boom developed they used ever more aggressive tactics to sell PPI policies as well.
Northern Rock became one of the most high profile victims of the global banking crisis of the late 2000s, and only remained in business because of government help. It became publicly owned until the 2010s, during which time parts of it were sold off to the likes of Virgin Money and Cerberus Capital Management. These days, it’s often thought of as a byword for financial mismanagement.
If you had a loan, a mortgage or a credit card with Northern Rock, there’s a strong possibility that a PPI policy was attached to it. It’s so easy to find out if you had PPI at all, because a phone call to Beat the Banks on 0800 193 1234 is all it takes. And it’s worth noting that time is running out, because the deadline for making compensation claims for mis-sold PPI is fast approaching.
Northern Rock’s ambitious borrowing programme included mortgages which represented 125% of a property’s value. While some saw this as a sound tactic at the time, others viewed it as a gamble. In the end, it was a gamble that didn’t pay off, and when the financial downturn started to take effect the company was left with debts that it struggled to pay off.
During the lending boom, Northern Rock was determined to expand, and they saw PPI as a way to bring in easy profits. The product itself was simple to sell because it was offered on a one size fits all basis. Sales teams required very little training, enabling the company to keep costs down. All that was left for them to do was sit back and wait for the money to come in.
Like many other major financial players at the time, Northern Rock encouraged an aggressive sales culture in its branches and its telesales operations. Pushing PPI onto customers brought with it significant financial rewards, and there was very little care given to whether their customers actually wanted or needed such policies in the first place.
In a huge number of instances, the PPI policy itself was of little or no use to the consumer. What little cover there was often turned out to be not applicable to the policy holders, which meant they had been paying monthly premiums for little more than a bucket of fresh air. It was surely morally wrong to push such products, but at the time the industry saw it as completely acceptable.
Beat the Banks have carried out a number of investigations into the way Northern Rock and others mis-sold PPI, and we continue to fight an injustice that should never have been allowed to happen. The UK’s banks, building societies and credit providers have set aside billions of pounds in order to settle PPI claims, an indicator of just how much wrong-doing took place.
Our friendly and knowledgeable team features a number of specialists who have many years of experience working in the financial sector, and this puts us in the best position to tackle those who treated their former customers so shabbily. We always go the extra mile when mounting cases, and we’d like to do the same for you.
Just call Beat the Banks today on 0800 193 1234 and we can take things from there. It’s that simple, and we hope to hear from you soon.