There isn’t really a big problem if banks and other lending companies make profit. They are businesses after all, and so they have to earn money to keep their operations running. However when these types of businesses begin to gain huge profits by doing things such as mis-selling PPI along with mortgages, loans and credit cards, then that becomes unethical.
And that is exactly what has been happening lately. A very large number of consumers have learned that along with their loans, credit cards and mortgages, they have been mis-sold PPI as well. This discovery led to a controversy as they clamoured for their PPI claims.
PPI though, is not entirely a bad thing to have. In fact, these policies can be useful as a form of protection when someone loses their job or they are hurt and cant work. This is all fine when the individual enters into the agreement freely after fully understanding what the cost is and what the cover will be. Unfortunately though, mis-sold PPI is extremely common. How come that this happens? It is because of the simple fact that the lender can make a large commission from selling it. They often make much more from that then they do off the terms of the loan. Any lender out there is in the business of making money and they find this method to be one that brings it in easily.
So how can you be mis-sold with PPI insurance? Here are some cases:
Were you pressured to buy a PPI policy because you were told that it was required? That is not true at all, because PPI is actually an optional add-on and the customer has the freedom to avail of it or not. You should never be forced to take PPI.
Then there’s the unexplained cost. Did the lender explain and broke down the expenses for you? Not having your lender explain the entire deal to you is a sure sign that the PPI has been mis-sold to you.
Does your PPI cover the entire length of your loan or the PPI covers less? You should check if it covers your policy from the start to finish or if there are any time periods excluded.
If any of these cases apply to you then surely you have been mis-sold with a PPI policy. Then by all means you have the right to claim it back. So check your PPI insurance policy now and make sure that you have not been scammed.