Finance

How Bank Representatives Mis Sell PPI?

PPI has always been a big part of UK news ever since it was discovered by the Financial Services Authority (FSA) in 2005 through investigations following a few complaints about the insurance policy. PPI became notorious because it allowed banks to earn thousands to ten thousands of pounds for insurance policies that the holders were ineligible for. The key to concealing the ineligibility and mis selling PPI to almost every UK citizen in the country was through the abusive sales methods of bank representatives.

PPI or payment protection insurance requires that their customers purchased the insurance having a perfect health and employment status. The customer must still be in the claiming age during the time the insurance’s benefits ‘mature’. However, not considering these particular details, bank representatives, insurance brokers and other commission-based financial advisers only pointed out the PPI’s benefits. This helped conceal the requirements mentioned earlier.

Most often, the commission-based financial advisers only point out the PPI’s benefits and logically explain how it improves the financial situation of the customer. The customer, easily urged by the bank representative, might, at this point, agree to purchase the insurance. Usually, this is because the customer trusts their bank representative to estimate if they are eligible for the insurance and the details of the insurance’s claiming and maturity date.

One cannot blame insurance brokers, bank representatives and other commission-based financial adviser for mis selling PPI. They are only doing their tasks and being in commission, they only earn what they sell. However, it is advised that customers become vigilant the next time for the unfair sales methods so as to avoid the same scenarios with other types of insurance products.

Mis sold PPI is practically useless. To make a PPI claim, you’ll need to fill out a PPI claims form and have it submitted to the Financial Ombudsman. It is advised that before you make a PPI claim, you’ve consulted with claims handling companies or even successful claimants to ensure that you can make your claim a success in the near future.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>