19 May How and Why PPI Was Widely Mis-Sold?
Payment protection insurance is a widely known insurance tool, which even though is a good policy in itself, got a bad name due to the ill marketing and selling practice used by the bank and their staff. The banks made huge profits from its sale, and its complex clauses ensured that the customers are very rarely able to use it to their advantage.
- It was widely mis-sold due to the lack of awareness among the customers.
- The people did not raise their voice against the ill practices used by the bank and their representatives.
- The agents were paid huge commissions, which made them sell PPI by any means.
- The banks made tremendous profits from the sale of PPI, and thus, they were not very keen on changing the flow of things.
- Since, no body objected to this ill practice, it continued for years and made billions for the bank.
PPI was widely mis-sold due to many reasons, and above mentioned are just few of the main reasons. Actually, at the time of the launch of the payment protection insurance, it was not widely publicized, and people didn’t know much about this finance tool. People were also not told at the time of selling loan, credit card or mortgage that the payment protection insurance is attached to the principal product. Unknowingly and without consent, people continued to pay for the payment protection insurance for years.
The bank agents and representatives were very smart, and understood how they can increase the sale of the PPI, and that was to capitalize on the lack of awareness among the public. Many who were looking for a loan were said by the bank’s representative that it was necessary to buy PPI to get the loan approved or sanctioned, and many a times, the customers were never told that there is a PPI attached to their loan. A good population among the victims never knew that their premium also contributes towards the payment protection insurance, because they were never told by the bank or their agents that PPI has been sold to them.
The reason behind this mass mis-selling was the amount of profit the banks were making on the sale of PPI, and the kind of incentives that were awarded to the agents and the bank’s representatives. It gave the banks and their agents enough reason to continue doing what they were doing with even more determination, without disturbing the sequence that were making them millions in profits. However, the bubble did burst one fine day, and now it has become easier for the customers to get their money back in PPI refunds, for those who were mis-sold the payment protection insurance. If you have been victimized too, simply use a PPI claim form and send your application as well. It is easier now than ever before to get your refund back quickly, and moreover, the banks would themselves assist you in getting the refunds without any hassles, provided you have all the relevant documents and proof.