As many customers are now finding out, they were mis-sold
Payment Protection Insurance on their loan, mortgage, store card,
catalogue account, car finance and credit cards. Whilst customers
make compensation claims to reclaim premiums paid AND interest,
there could soon be more compensation coming your way.

Selling commission-based products has been an issue for many
people all along, and the ruling in the Plevin case has now been
interpreted. What this means is that if the commission paid on the
sale of PPI was higher than 50% and you were not told, you should
be compensated.
How did mis-selling of PPI happening in the first place?
Profits and commission.
As a sales advisor for a bank, an employee would often receive
an incentive payment if they sold various products.
This in itself is not a bad idea… if you need the product.
For some people with no savings and possibly employment that may
be under threat, taking out a PPI policy or another insurance
policy of this kind would be a sensible move.
Did you know...?
It was found that some financial institutions operated a 'first
past the post' system in which the first 21 members of sale staff
to reach a target would receive a £10,000 bonus
Where it went wrong with the selling of PPI was that advisors
received large amounts of commission for selling it, meaning that
the banks made staggering profits.
In fact, it has been estimated that at the height of the
mis-selling, some banks were making up to 80% of their profits from
PPI sales (Source: BBC money)
What measures are being put in place to stop this happening
again?
The Financial Conduct Authority is clamping down on commission
based sales within the financial industry.
According to one report, bank staff still feels 'under pressure'
to sell products. Whilst commission- based selling isn't a problem
- after all, it acts as an incentive - it can cloud the judgement
of an advisor to sell products to people that don't really need
it.
Did you know...?
Sales staff at one financial firm could earn as much as £10,00 on
top of their earning with commission-based selling of PPI.
If you have a loan, credit card or mortgage that you have taken
out in the last 6 years or so, then it would be worth checking your
documentation to see if you have PPI.
If you think you were unfairly sold PPI, you should claim PPI
compensation.
Why not call out team for a no obligation chat?