The multitude of ways that the banks and financial institutions wrongly sold payment protection insurance has resulted in it being exceptionally common that a consumer was mis sold their PPI policy in more ways than one. These different ways that the payment protection insurance policies were mis sold tend to fall into two separate categories and these are through the actions of the sales team at the lenders, credit providers and banks and the consumer not qualifying for the policy because they did not meet the various criteria which are listed in the terms and conditions of the policies.
PPI Mis-Selling Through The Sales Process
When selling the payment protection insurance policies the sales person should have properly described all the features of the policy, what the benefits were and most importantly all of the restrictions and conditions that came with the policy. Such restrictions and conditions should have included all the ways that a customer could go from being eligible for the protection provided by the cover to ineligible. For example, moving from an employed to a self employed position of employment or employment to being a student.
Although it sounds obvious, it is absolutely essential that the customer was told that they were being sold the policy but more often than not policies were hidden in application forms or terminology which did not completely make the customer aware that they were being sold the policy.
Changes in the industry post January 14th 2005 means that if the sales person advised the customer to take out the policy through recommending the specific product they needed to create a “demands and needs” statement which explained they had recommended the policy and why it met the needs of the customer. If this was not created then the policy was mis sold to the customer and a PPI claim can be started.
The sales process was so problematic and rooted deep in the bank’s organisational and training procedure and the management of their staff and their targets and this has resulted in many of the banks that were guilty of this to contact their customers. Such contact is the bank admitting that they were guilty of mis selling payment protection insurance through a deep rooted problem in the bank and PPI claims can now be made by the customer so they can get their money back. You don’t need to wait for a letter though before you make a claim, if you think you were treated in the ways that we have mentioned a PPI claim can be made against the bank without them admitting their faults at the earliest stage and it is recommended you start your PPI claim as soon as possible.
Potential claimants who need any help or advice regarding the payment protection insurance policy which they hold and the claim that could be made can contact PPI Claims Management Company. Such firms can answer questions and then complete the PPI claims for all of the policies held by a customer that were mis sold.
Mis-Selling PPI Through The Customer Not Being Eligible For The Policy
Before selling any policies to customers with a loan or type of finance the sales advisor at the bank or finance company needed to complete an array of checks or question the customer in regards to their actual eligibility for the products that they were selling, even if the customer had asked to have the payment protection insurance policy added on to their loan. This is especially the case when it came to PPI because it was such a strict type of insurance with a heavily restrictive nature when it came to paying out and covering the credit repayments which it was created to do. Many sales advisors failed to check such basic factors such as whether the customer was in full time employment and thousands of customers were sold policies under the impression that if they lost their jobs they would not need to worry about making repayments on their loans or credit cards. But, instead many found that when they lost their job and income and made an application for the insurance to cover their loan repayments they were not actually receiving any protection from the insurance because they did not meet all of the criteria which was in place. This was followed inevitably by those thousands of policy holders with no income having no way of paying their loans or credit cards back and encountering severe financial problems because they did not have an alternative back up in place as they were under the impression the PPI policy was enough. Such instances are just a small look at the bigger problems that mis sold PPI policies caused throughout homes in the United Kingdom over the last two decades.