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Archive for tag: PPI Financial Products

Has Anything Really Changed When it Comes to Selling Financial Products to Customers?

The mass and whole scale mis-selling of payment protection insurance (PPI) to customers has thrown up a whole new debate about how banks and lenders sell to customers. Routine 'sales' were questioned and now, changes are being implemented to safe guard the customer…

Emotional decisions vs. rational decisions

Purchases of all kinds are an emotional decision; customers did not see themselves, in many cases, as 'buying' loans, credit cards, mortgages etc. but that it exactly what was happening. Customers were buying a product and it was an emotional decision…

Banks and lenders, like all other businesses, know this and so they took advantage of the situation, offering various additional products that would enhance the customers experience; with financial products for example, they would often ask how would you cover repayments if you were no longer working etc.?

They would then offer you a 'magic' product that for a few extra pence a month, would make sure that you would not end up in financial problems if you did lose your job. You were hooked and you bought the product…

Advised sales - setting out the reasons why

And so, the lines between suggesting a product and an advised sale were blurred. If you take out a loan with a bank, you do not need to take on any other additional product.

It may be a good idea; it may be a wise and prudent move if you know your job is looking a little shaky in the future etc. It would seem a responsible thing to do BUT, you still do not have to buy the banks' own product.

Like car insurance, you CAN shop around and get the right deal for your current circumstances.

If, however, the bank insist that as part of the package that their own product is the one you must have, then they must clearly tell you why - and not just verbally; they must set this out in writing and clearly show the reasons why, as part of this package, their policy is not the best, butthe right one for you at this time.

Breathing space

Consumer law is clear; you have 14 days from signing the agreement to change your mind. With loans, and in particular, PPI this was not made clear. Customers also thought that this law did not apply to financial products, but it does…

But now, the Financial Conduct Authority, along with various consumer groups have worked with ban to introduce a breathing space within which products in addition to the main product -t he loan or mortgage, for example - cannot be offered.

Customers are to be given time and space to consider the man product before they are offered any other products; they are to be given ALL the information to make an informed decision. And they are not be badgered or hoodwinked.

Practices have changed BUT, if you think you have a claim for PPI compensation act now by calling Payment Protection Scotland.