The Payment Protection Insurance was widely mis-sold to millions of customers across the country, and the banks made huge profits from its sale. Even though the PPI was actually a good insurance product on the book, the way it was marketed and sold to the customers made it one of the controversial and ill-famed insurance products of all times. The sales staff and the bank agents sold the PPI to unsuspecting customers in a way that most of the times they never knew they were buying PPI along with their loan, credit card or mortgage loans.
The agents didn’t tell many of the customers that they would be paying for the PPI as well in their monthly instalment towards their loan or mortgage. Many of the customers were told that buying PPI is essential to get the loan or mortgage approved. And, the desperate customers in the hope of getting their loan approved used to go with what the agents used to advise. Many a times, the agents and the bank’s sales staff told the customers that it is mandatory to buy PPI, when it is clearly optional. These mis-selling techniques used by the banks and their agents made it a very controversial product when the matter finally got saturated and reached the court of law.
The banks kept silent all this while because it made huge profits from the sale of PPI, while the sales staff and the bank representatives continued with their mis-selling because the banks offered them huge commissions on each sale of PPI policies. There was no reason why anyone should complain, until one day when someone finally noticed the exploitation of the customers and took the matter to the court. The bubble burst, and the banks were ordered by the court to compensate each and every customer who comes forward with the proof that they were mis-sold PPI. The process of filing PPI refund is easy and the applicants just need to file an application and provide certain loan/mortgage/credit card documents and the agreement, and the rest of the process is automated. A couple of main reasons why PPI was mis-sold are –
- The agents and the bank’s sales staff got huge incentives and commissions on sales of PPI policy.
- The banks made profits, and their profit rose considerably with the commencement of the sale of PPI. And thus, they had no reason to complain against the techniques used by their agents.
As the trend continued without any disturbances for long, and the customers didn’t seem to be taking notice of what was going on, nobody did much to protect the rights and the interest of the customers. But, finally the truth did come to light and now the customers who were mis-sold PPI can claim their money back, easily. Customers can even check how much money there are eligible to claim through the PPI claims calculator online.
Author Bio – Gina Henderson is a blogger and an author on finance category and has written numerous articles and columns on finance, especially insurance. Her blog has helped many victims of PPI scandal to get their money back from the banks.