In recent years, one of the biggest financial scandals has been the mis-selling of PPI ,or Payment Protection Insurance. Consumers have been duped by banks into buying expensive insurance policies that they do not actually get any benefit from. A court ruling has said that the banks have to pay back all of the money that they took off unsuspecting consumers, however, they have been very slow in doing this.
If you have been mis-sold PPI, then it is important that you take steps in order to recover the money. You are the innocent party here in the banks have been proved wrong in the courts. Many people regard this mis-selling as nothing short of theft and that the banks were conducting criminal activities.
It is estimated that the market for PPI was worth £6 billion to banks and the generated them nearly £1.5 billion in profits each year. This money they are now having to pay back and they’ve also received significant fines.
The banks failed to explain what PPI was for exactly and this led to many customers paying for it when it was not useful for them. Salespeople for banks were not giving all the details to customers and this meant they were unaware of what they were buying.
Banks even took it one step further and customers were told that if they wanted a loan, they were going to have to pay for the policy. They were also told that if they took out the policies a loan would cost them less, but this was simply not the case, and the banks knew it wasn’t true.
They also misled customers into thinking that policies were mandatory, when they are a purely optional addition to a loan. Some banks even charge people for the insurance without asking them.