PPI scandal is one of the biggest in the financial history of the country and millions of people have lost great amount of money while paying towards PPI. The problem was the lack of awareness among the consumers, and also the kind of profits that the banks and their employees were making by selling PPI. The customers in their desperation to get the loan didn’t try much to know about where they are signing, what are the clauses of the agreement they are being offered, and so on, and just went ahead with what the banks told to get the loan, credit card or the mortgage approved at the earliest.
The banks’ representatives also fooled the customers in a very innovative and mischievous manner, which ensured that the customers never gets to know that they are paying more than they should. Here are the few ways the PPI was widely mis-sold to the customers –
The customers were never told that they are being sold PPI.
The customers were not eligible to get the coverage offered by the PPI.
The customer was either below 18 or above 65 at the time of being sold PPI.
The customers were forced to buy PPI by the banks’ agents in order to get the loan approved.
The agents never told all the clauses pertaining to PPI in full while selling PPI.
So, these were the few major ways the PPI was widely mis-sold. You can get to know more about how the PPI was mis-sold at www.howtoclaimppi.org.uk. It would give you a good idea of how the trust of the customers was breached by the banks and their agents. It is for this reason that the banks now have to pay billions in refunds to the customers, along with the interest.