Thousands of individuals who applied for some credit or finance in the last 10 or more years in the United Kingdom will have been exposed to the issue that is now known as the PPI scandal. PPI aka payment protection insurance was sold with thousands of loans and credits cards in a sales process that was rife with problems, from the basics such as simply telling the consumer that they were being sold the policy to the more complex, yet still relatively simple checking that the individual was actually able to use the policy that they were being sold. PPI claims are now happening on a daily basis with thousands of claims being made to some of the banks and companies that mis sold payment protection insurance most frequently every month.
Payment protection insurance was developed as a back up so if a person with credit ever lost so much income that resulted in them not being able to meet their financial obligations any more they could use the policy to make the payments for them. In theory this does sound like an attractive form of insurance but when you look at the policy in further depth you will discover that payment protection insurance was actually an expensive form of insurance with very little cost to benefit ratio and most importantly, very rarely paid out primarily because the policy holder was not actually eligible to have been sold the policy in the first instance.
After many consumers started to discover that there were issues with the payment protection insurance policies complaints to the Financial Ombudsman were made which then led to legal battles with the High Court. The banks were found to have been mis selling payment protection insurance as standard with problems rooted deep inside the sales procedure. PPI policies were a high commission product for the sales people and this encouraged them to make as many sales as they possibly could in their target driven environment.
Due to the fact that PPI policy sales were encouraged so much there are so many different ways in which a payment protection insurance policy was mis sold and these are down to the banks and the sales person and through generally no fault of the individual which it was sold to.
The banks sold policies to individuals that were not actually suitable for a payment protection insurance policy and if they were sold such a policy and needed to make a claim to get their credit repayments covered they would find that they were not eligible and had been paying for something that they never would have been able to use. There are many conditions regarding the employment status of any individual holding a policy and then further conditions regarding the health of the policy holder. The bank needed to ensure that the customer knew all of these conditions and actually met them so they could get a pay out if it was ever needed.
The banks and credit card companies selling products without making full disclosure of all of the small print in regards to the policy was also another common way in which customers ended up being a victim of the PPI scandal. The duty of care which the bank held for their customers meant that they should have been fully ensuring that all customers were told everything they needed to know about the policy they were being sold and understand how it affected them. This includes things such as not informing customers of the issues that would result in a claim on the policy being rejected and all of the terms that need to be adhered to and conditions of receiving a pay out. Alongside this the banks also needed to inform any customers, even those that wanted the policy, that they could buy a policy from another provider and actually advise them to compare the products that were also available on the market. PPI policies didn’t need to be bought on the same day as the loan or credit card contrary to what many customers were actually told.
Finally as well as the two ways of mis selling listed earlier payment protection insurance policies were also sold without the knowledge of the customer through a variety of tactics such as opt out forms or simply just not informing the customer that they policy and the cost of it was being wrapped into the cost of their loan.
If you believe that you were one of the thousands of victims which ended up being part of the mis sold PPI scandal it is now time they you make a claim and get your money back. You are fully entitled to the refund and additional compensation and your PPI claim can be completed in a matter of weeks by PPI Claims Management Company. The average PPI claims pay out is £3000 so it is definitely not something that should be overlooked.