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Archive for tag: PPI – What’s Changed

PPI – What’s Changed?

The compensation process for mis-sold payment protection insurance (PPI) began in earnest back in January 2011. With billions of pounds already repaid to customers, there are more claims to come and 2017 could be the year you make your claim for PPI compensation.

But, as a consumer, you may be wondering what has changed to stop something like this happening again.

There have been changes, some of which are specific to the sale of PPI and others that inform food practice across banks and lenders in general.

1. Separate sales - one of the biggest issues with PPI was that it was sold at the same time as the main product, such as a loan. Banks and lenders did, to a certain extent, play on the emotions of their customer, selling them an additional product at a time when they would agree to it because they thought it was important to their loan application etc.

2. Not advise sales - people also thought that when a bank or lender suggested PPI they were in fact, advising them to buy it. Banks argue this was not the case but customers all over the country beg to differ. And so do we! This is why the Financial Conduct Authority have changed a rule: if a bank is advising a customer to buy a product, they need to tell them why in writing.

3. Make terms of sales clearer - banks and lenders should no longer be offering additional products alongside loans the time of sale. They should leave a gap of at least 7 days before they offer you an insurance product and make it clear that not buying the product will not affect their application for credit.

4. 'Opt in' online - another common issue was that when people bought credit cards or applied for loans online, the 'do you want PPI?' box was already ticked. Unless you scrolled to the end of the terms and conditions, you would have failed to see this. You also wouldn't get chance to examine whether this was worth paying for. In other words, you could be paying for an insurance product that did not cover you.

5. PPI is no longer sold - in most cases, PPI has died a natural death as a result of the mis-selling scandal. There are other similar products, such as income protection insurance, that are far superior products and worth the money.

If you have PPI, you could have a claim for compensation. Why not call us now for a no obligation chat?