subject: The Story Regarding Mis Sold PPI, Record Breaking Bank Profits, Conned Customers And Life Threatening Debts [print this page] The Story Regarding Mis Sold PPI, Record Breaking Bank Profits, Conned Customers And Life Threatening Debts
The mis-selling of PPI took place especially by trainee finance officers working at the under instructions of their managers. People who were not even entitled to PPI as per to its rules had it foisted on them.
These included the likes of retired people the unemployed and self-employed who were informed when they went to search for loans, a mortgage or a credit card that PPI was mandatory. Under the rules of PPI, if a policy-holder defaulted on a payment because of a serious illness or mishap among other possibilities, PPI would make certain the payments were made for a minimum of 12 months.
The victims who were misled when they went in for PPI claims were notified that they were not entitled to it making for a very furious lot. When the corrupt practice was discovered the Financial Services Authority (FSA) took action and began fining financial institutions heavily right and left, though not enough to put a big enough crimp in their assets.
The scam also ended in the likes of barristers stepping in to deal with claims on behalf of a wide group of policy-holders who had been misled by dishonest business types. Solicitors and claims companies asked for 20 percent of the cash returned along with VAT, which is the regular going rate. Those seeking claims can now look forward to get their funds back in 12 weeks from the time of staking a claim.
It is bad that PPI earned itself a bad reputation. But worse is the situation of those who were told it was strictly required and almost compelled to sign on the dotted line in order to avail a loan, mortgage or even a credit card.
To make the situation worse, when they proceeded to make their mis-sold PPI claims they discovered to their shock that the policy amounts were being added on to their monthly payments, which meant they had been paying cash for no reason at all. The banks on their part have been putting up a courageous face after being showed up so obviously and now are obviously daring the right of the FSA to fine heavy sums for their transgressions.
The FSA has come under the microscope as many are speculating why it was dozing off on the job when all this was taking place. Political parties, with polls round the corner, might make this a campaign issue although many candidates may even be financed by financial institutions like banks and insurance companies, which played no small part on the the scandal.
People making a PPI claims have now become a source of big business for claims organizationsand solicitors stand to make large sums in the form of commissions from claims clients. Frequently, because the common person is a bit wary of challenging banks head-on they really have little option but to approach the solicitors and the claims companies for their grievances to be addressed. Considering the amounts they never gotten back before everything was shown up, 20 percent plus VAT seems a small price to pay in their eyes.
