08 August 2016
Payment protection insurance (PPI) is a financial product with an infamous reputation. Thousands of policies were mis-sold to millions of customers, resulting in a billions of pounds being paid back to customers in the form of compensation.
Some people have received tens of thousands of pounds back in compensation, whereas other people have received a few hundred pounds.
Whilst you may be initially disappointed with this small amount, it is important that you claim your money back, no matter how large or small the compensation payment is. And here's why;
Whether it's a few hundred pounds or thousands of pounds, it is your money that the bank took in payment for a product that they mis-sold you. In some cases, this selling was deliberate and intentional.
In other words, they knew that the product was not right for you but they still sold it to you. Fuelled by profit, commission and sales targets, they sold policies to people who were not covered by it. Thus, you were wasting your money.
If you bought an item in a shop and found out it didn't work, what would you do? You would take it back an either ask for a replacement or your money back. Now imagine if when you took the item back, the shop assistant just shrugged their shoulders and said that you should have known it was broken.
You would be appalled at this attitude. In some ways, this is what happened when lone customers complained about PPI many years ago but, with perseverance and the power of consumer groups and regulators, the poor practice behind the mis-selling of PPI was made public.
PPI was a product that was faulty before you 'bought' it and in most cases, the banks and lenders did not give customers all of the facts about it.
Banks and lenders look very different today than they did a few decades ago. They are now businesses, in the market to make a profit and this means selling products.
The majority of their products, if sold in the right way to customers who will benefit from them, are excellent. But PPI is an example of how mis-selling snowballs out of control.
By claiming PPI compensation, you are part of the growing movement to stop bad selling practices happening within banks and lenders, as well as the financial industry as a whole.