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Archive for tag: Did PPI change anything

Did PPI Really Change Anything?

For some people, the wholescale mis-selling pf payment protection insurance (PPI) was another symptom of banking system with a less-than-scrupulous attitude in how policies and products were sold to customers.

It was another means of highlighting how powerful and unregulated the main players in the banking industry had become. It is hard to refute such a view point when you understand how long the mis-selling of PPI policies continued unabated.

With very little means and ability to challenge banks or to get them to change their behaviour, it took pressure from consumer organisations and finally, a debate in the commons and a legal review to make the changes that were needed - and only then could customers begin to claim their money back.

The mis-selling of PPI has led to some important changes:

  • Banks cannot sell you anything other than the product that you ask forat the time

If you approach the bank for a loan, that is what they should sell to you, or discuss with you. It is no longer to be seen and seized as an opportune moment to sell on other products, especially insurance ones.

  • Tighter rules around advised sales

Some customers were mis-sold PPI because they believed they were being advised to buy it. The boundaries between advised sales and 'this is a good idea' were once very blurred but are now much clearer. If the bank or lender advise you to buy a product, they need to tell you why in writing.

  • They need to be a lot more open

One of the major issues that came to the fore was that the bank nor lenders were always open and transparent about some aspects of PPI. For example, the amount of commission paid when a policy was sold was rarely revealed and neither was the pay-out rate for claims that were made on the policy.

  • They need to focus on the customer

Perhaps one of the biggest scandals of the PPI mis-selling saga was the blatant abuse of the trust that customers placed in the banks. Customers thought that their banks had their best interests at heart and would never think that their bank, who they had banked with for decades and knew their financial position, would ever sell them a product that was worthless. But they did.

If you think you were mis-sold PPI and want to claim your money back, you can start the ball rolling with Payment Scotland today. All you need to do is call us!