Mis-sold PPI Scandal Makes PPI Industry to Have a problem
Because of unemployment of a large amount of people inside the uk
and those who were made redundant, more and more mis-sold ppi are coming out of the light. Many of them discovered that the insurance policy was useless to them because they didn’t meet the requirements to create a claim.
These people are those with pre-existing medical condition, on benefits, contractual and part time workers, self-employed and unemployed, students and retired when sold the policy. Sad to say, sales adviser didnt clarify the full details of the policy to them. Others thought that their sales agent knew from the start what their status was but still insisted them to receive a policy.
Some said they weren¡¯t told that the cost of the policy was included on to their loan which resulted to mis-sold ppi and those who did question it were advised this could help their loan application be accepted.
Lots of people who took out loans, credit cards, mortgages and other kinds of loans and some of these people actually would benefit from the policy.
Due to instability of the economy, a lot of people see protection insurance as an extra payment contributing to their financial hardships and expenses which they believe is not required or have been put off by ppi bad publicity from the press, Financial Ombudsman Service, Financial Services Authority, Office of Fair Trading and British Government.
Because of all of these troubles, people are forgetting the main purpose of the insurance policy. So much bad press release has been created it out to be a scam, but the true issue is not with ppi but the way it had been sold, either too costly, improperly explained and was sold to people who do not need the policy. Without this ppi policy, the borrowers could be left without any protection over paying back big debts if they get severe illness, lose their employment, or made redundant.
The chaos surrounding mis-sold ppi are justified since many banks, lenders and brokers are making vast amounts of profits from these mis-sold insurance policies. Because with the number of ppi customers who are now claiming back ppi repayments, the industry is currently struggling on how to get away with the scandal of ppi urging people not to buy and if they have in the past to claim repayments for their ppi policies.
Over the last years, mis-sold ppi is actually highlighted in the news papers as well as other types of media by different consumer groups and watch dogs. This has given the ppi industry a bad image causing many banks to take away ppi as an option for their loans and credit agreements. However, there were ppi could mean you may lose out, especially in an unpredictable economy like now.
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