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WHY Was PPI Mis-Sold to MILLIONS of Customers?

It's a big question. The answer is complex. But if you have a PPI policy, the likelihood is, you ARE entitled to compensation. But why was the mis-selling of PPI allowed to continue for so long?

Wrapped Up in The Law

Even though it was spotted back in the mid-1990s by consumer groups and some politicians, the issue of stopping banks from mis-selling PPI policies was hindered, in many respects, by the law.

In the UK, the Government does not 'interfere' with the market by dictating what can be sold and at what price. This 'free market' scenario means that when there are issues with how products and services are being sold, the onus must come from the customer.

But thousands upon thousands of customers were blinded by loyalty. Why on earth, they questioned, would their bank, an institution they had been with for decades, sell them a policy that was not only over-priced, but of no use?

It seemed too ludicrous a question to ask.

But it is exactly what happened?

The Way PPI Was Sold

PPI was sold in different ways but they were all essentially underhand. People were often felt they had to buy it so that they got the loan they needed. Or, people were led to believe that it was a fantastic policy that really suited their needs.

But, there were many problems;

  • Joint loan holders were surprised to find that PPI only covered one of them, usually discovering this vital piece of information at a time they needed PPI most.
  • Other people attempted to make a claim but were told they had to wait 6 months.
  • People were not told of the exclusion under the terms and conditions, hence had no idea they couldn't claim if they would no longer work due to a mental health illness or a 'bad back'.
  • PPI was also very expensive, offering very little cover to very few people but cost a lot of money.
  • The process of making a claim was long and complicated. It took over 12 months for a claim to be processed, with the chances of it being a successful claim very slim - only 15% of claims against PPI policies were successful.

Many Changes

There have been many changes in the wake of the PPI mis-selling scandal. Banks are no longer allowed to sell additional products at the same time a customer buys a loan or credit card etc.

There have been bigger changes too, such as the Financial Conduct Authority, the 'new' regulator of the banks and lenders. It is a body that now has more powers to control bank behaviour and compel them to put things right.

Do You Have a PPI Compensation Claim?

If you have had a loan or credit card from the mid-1990s onwards, the likelihood is you were mis-sold PPI. And that means you have a claim for PPI compensation - call us today!

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