The unending saga of mis-sold PPI has shown no signs of stopping as more and more people are making PPI claims through claims advisers or on their own. They all realised that they were somewhat cheated into buying the PPI by the financial institutions they have long relied on for credit. A tremendous amount of mis-selling schemes were devised by banks and other insurance brokers for the past several years if only to gain profit from the product. A high Court ruling over this matter has made banks busy with recognising PPI claims and investigating them up to this date.
However, despite this ruling, there are still banks and institutions that refuse to abide by the mandate and work out ways to avoid claims when in fact, an estimated 9 billion pounds in compensation was reportedly allotted for mis-sold PPIs alone.
If we try to look at things from several years back, when PPI was introduced, it has the most ideal intention of becoming a repayment safety net for consumers. It was designed for the purpose of covering repayment obligations in the event that a policy holder gets sick for a period of time, had an accident and needed to recuperate, or was made redundant at work and had to find another job to sustain their cost of living. Unfortunately, these situations alone were used as a tactical advantage of profit-hungry PPI sellers, and found ways to easily cheat people into buying it.
To cite several instances, it has been reported that people were signed up to PPI without their knowledge and consent. Their signatures were either forged on the PPI agreement form or they could not have easily noticed the automatic signing up in an online application for credit. There were also consumers whose needs of the policy and its suitability to their current financial situations were not established. Some were not even eligible for cover – being under 18, over 65, not employed full time, and had pre-existing medical conditions, but were still made to buy. Other instances of mis-selling took place when people were not explicitly informed of vital information surrounding the product. There were those who were made to believe it determines the approval of their application while some were simply talked into buying the policy with false or zero information on policy duration and costs. Continue reading “The perfect solution to mis-selling PPI: Reclaiming the payment”