PPI Claims Glasgow
PPI Glasgow can help with PPI Claims in Glasgow.
The problem with PPI...
The Competition Commission estimated that consumers have been over-charged by £1.4billion on mis-sold payment protection insurance (PPI) but what is the problem with PPI…
- Problem 1: Mis-selling
Many banks and other financial institutions have been fined for breaking the tight rules around the selling of products and services to customers. PPI was sold to customers in a way that was deemed unacceptable for many reasons. As time marched on, banks realised there was huge profits to be made on PPI sales – and sales teams were increasingly driven by commission payments. At a time when customers were focused on acquiring a loan to buy a home etc., they were also bombarded with information on another product. Gradually, banks and lenders stopped giving the correct information to customers so they were no longer making an informed choice – if they were given a choice at all.
- Problem 2: It was compulsory…
… no it isn’t! Credit cards were some of the worst offenders in this sense. 13% of the consumers surveyed by the consumer champion ‘Which?’ believed that agreeing to PPI on their credit card was a condition of a successful acceptance. In fact, credit card providers have a big slice of the PPI cake and with only 11% of PPI policies ever paying out, they were making excellent profits.
- Problem 3: a defective product
PPI has a fairly narrow set of terms and conditions. For example, the PPI policy sold to many customers were unsuitable for those people who were self-employed or for people who had pre-existing medical conditions as under this policy they were not covered if they could no longer work.
- Problem 4: No competition
The Office of Fair Trading was the organisation that first called into question the PPI market and the fact that it was of no use or benefit to the customers. It also raised concerns about the way it was being sold and referred it to the Competition Commission.
This body, after lengthy investigation, found that the lack of competition within the PPI market meant that customers were not getting a fair deal; premium prices were inflated artificially high. From these finding, the Financial Services Authority also got involved and very soon the PPI mis-selling scandal became a massive compensation exercise.
And so, the problem overall with PPI is that it is not fit for purpose and whilst customers who feel their circumstances may be precarious financially can invest wisely in a PPI style product, the policies being offered by banks alongside loan and mortgages etc., were not good value for money.
Contact PPI Glasgow to Make Your PPI Claims
Please contact PPI Glasgow today to start your PPI Claim.