Payment protection insurance policies were optional!
Once you look over the PPI scandal history, into the various landmark cases and PPI claims that have been made you will begin to notice quite a theme and this is the fact that many of the UK consumers were led to believe that payment protection insurance was a compulsory policy which was required to be taken out if you wanted finance.
A payment protection insurance policy was actually an optional add on which you could take out alongside your credit based products such as loans and credit cards if you met the eligibility criteria.
The sales teams at the high street banks across the high street used lots of different ways of selling the payment protection insurance policies to the customers that did not actually want the insurance cover. This in itself was unethical and has led to changes in the way the financial industry operates and has resulted in thousands of customers being sold products they didn’t want, did not need or were not able to use and therefore spending their money on a useless product. To assist in the high number of PPI claims which need to be made by customers as a result of this companies such as PPI Claims Management Offering No Win No FEE are now available and offering expert advice to customers that were victims of the scandal and have further questions regarding the claims procedure. Such companies offer a speedy claims process which takes just a matter of weeks to get the customer their money back from the banks, loan providers or credit card companies!
One of the most common sales tactics that were used by the sales teams was making the customer believe that the payment protection insurance was a condition of their finance application and effectively using force to get them to take out the policy. Informing the customer that they would only be accepted for the loan or credit card if they first agreed to taking out the payment protection insurance policy and using pressure sales tactics was rife and of course preyed on the vulnerable who were in need of the finance they were applying for, perhaps having no other option open to them or those that simply didn’t know how such policies operated. As a direct result of this the customer may have felt they could not comfortably afford such repayments but took out the payment protection insurance policy anyway because they felt they had no choice in the matter. In such situations the fact that the customer may have not even been eligible for the policy and able to make a claim on it in the future if the need arose was barely looked into, nor were the terms and conditions explained which does make the PPI policy mis sold in more than one way! In such circumstances it is very easy for the customer to make a PPI claim and get a refund on the money they paid and compensation for the trouble this behaviour has caused. Financial issues which were directly caused by taking out a PPI policy and the scandal can also be reimbursed by the banks if proof of this occurring is available.
Another way of forcing the payment protection policies upon the customer was simply by not informing them that they were being sold the policy or making it very difficult for them to realise what their monthly loan repayment actually consisted of. When making an online application for loans, especially when it came to online only operations such as Egg or Loans.co.uk the application forms were often designed in a way that made it easy for the applicant to not notice they were being sold a policy. Payment protection insurance was often opted into by default and as a result the applicants had to notice this then choose to opt out. In most situations the applicant ended up agreeing to a PPI policy without even realising it. Without realising also meant that the customer wasn’t made aware of all of the terms and conditions that came with such a policy.
Although it was created to be a recommended back up and convenient form of insurance for those that do not have back up funds to make repayments upon the loss of a job it was never created to be a compulsory policy. Not only was it optional if a customer did actually want to take out a PPI policy they were able to do so from another bank or insurance provider after comparing all of the deals which were available on the market. Very few customers were able to do this as they were led to believe that purchasing it from the bank alongside their loan was the only option they had.