One of the reasons why so many people in the UK have filed successful complaints against lenders is that they were sold PPI against their knowledge. This has come to light as a result of complaints to The Financial Services Authority and The Office of Fair Trading that were reported by the nonprofit organization, the Citizens Advice Bureau. After procuring a loan, consumers noticed that their payments were so much larger than they had anticipated, sometimes by as much as 50% or more!
When their loan payments were finally understood it became apparent that they were paying for something called Payment Protection Insurance that was never mentioned when the loan was being applied for. No mention was made when signing the final documents for the loan as well. In an effort to understand why monthly payments were so high it was discovered that the lender had mis sold PPI to them without their knowledge or consent. The FSA is well aware of this practice and is teaming up with other government and consumer agencies to put an end to this practice once and for all. If compensation and fines are strong enough it is felt that lenders will use more discretion in the future.