Mis-selling Of PPI Still Common

For quite a few years now, the controversy surrounding Payment Protection Insurance (PPI) has made known to the public but loads of citizens in the UK are still uninformed of the discrepancies and sham involved in this form of loan insurance.  

A lot of people who took out loans that included PPIs had no other alternative but to be in agreement to it due to the fact that they were led to believe that it’s required or because PPI is obligatory.  PPIs are included to any type of secured or unsecured loan such as credit cards, personal loans and mortgage and the main purpose of PPIs is to financially assist those who abruptly lose their work or become ill.

Credit card holders in the UK who have PPI attached on their agreement is estimated to be around 9.8 million.  More than 10% of them thought the conditions on their credit card are mandatorily included with PPI or the notion that they would be favoured by the lender if they were amenable to the insurance.  

Banks and lending institutions are said to generate nearly £1 billion a year in revenue over PPI alone.  Ethical business practices have been a rare attribute among several financial institutions and it’s no surprise if selling of PPI is still frequent given this kind of revenue.  The fact that payments made by customers to their PPI already rake in a lot of extra revenue to banks and other financial institutions, the most disturbing of all is that individuals who try to do PPI claims are being denied or ignored.  

A survey conducted revealed that the success rate of the amount of people who get compensated for their PPI claims is only 11%.  People who don’t get compensated of their PPI claim are often denied because of their age or how they are employed.  However, factors like these should have been made known to the borrower prior to the PPI was included.  

Any customer trying to obtain a loan should not be forced to get PPI as it is non-compulsory.  PPI coverage and exclusions should also be clarified to borrowers.  Exclusions include those who are 65 years old and over and those who are self-employed.  Further significant facts such as single payment for the insurance, interest rate, and paying interest even if the PPI expires should be stated in the start.

Lenders who go forward with selling PPI without informing their clients of the critical rules have mis-sold PPI.  

Financial experts and consumer advocacy groups are criticizing PPI and those that offer them and essentially say that PPI is a downright rip-off and comparing it to snake oil.  With millions of UK consumer still struggling to repair their finances, the last thing everyone need is to be hustled and PPI is an excess baggage that needs to be left on the side.