The payment protection insurance or the PPI scandal is one of the most infamous financial scandals in not only UK but all over the world, and has created a negative benchmark in the history of banking sector for the breach of trust it led to between banks and its customers. The people who trusted banks with eyes closed were finally let known that they need to check carefully what they buy from the bank and must carefully consider all the given clauses of financial products before buying anything or investing.
The PPI is actually a somewhat useful product that helps the people in financial crisis to take care of certain line of credit, without letting their credit score getting negatively affected. However, the banks and their representatives were very aggressive in selling the PPI, and sold it to people without letting them know, sold it to people who didn’t needed it, and even sold it to people by force in order for them to get benefits of other financial products they wanted to purchase. In short, they made it a point to sell PPI by hook or by crook. And, finally after sometime, people started to realise they are paying more than they were supposed to and looked carefully to find hidden clauses for PPI inserted in the documents.
Few customers knocked the doors of the court and after thorough investigations and class action suit defeat, the banks had to succumb and make sure they refund the money to the customers, along with the interest. Here are the few reasons why PPI scandal had to pop sooner or later –
Banks Overdid It
Most banks started to sell ppi to their clients, even those who were ineligible for the ppi payout when they needed it.
Customers Got Aware
With people becoming more aware about ppi due to this report reaching the media, more people became aware about how they were sold ppi without their knowledge.
Customers Started To Check Documents
With people coming to know about ppi, they started to check their documents to see if they had bought the insurance. They found out that they had been paying high premiums for the same, sometimes as high as 20% of the total loan that they bought.
These are the few things that happened in order to pop the biggest financial scandal in the history of the UK by the banks. Now, finally the people who have lost money can get it back by claiming PPI refunds.