29 January 2018
Find out what an advised sale is and how this could be the basis on which you successfully claim your money back.
Payment protection insurance (PPI) was once the golden ticket for banks and lenders to make amazing profits and dazzling commissions. But, it is now a problem that they are desperate to see the back off.
And just as you think the PPI mis-selling scandal is going away, it has a habit of making a return, a reminder, perhaps, to the thousands of people yet to make a claim for PPI compensation.
There were many reasons why PPI was mis-sold from knowing the customer would not benefit from the policy but selling it to them anyway, to banks simply adding it to accounts at a later date.
However, there is one mis-selling reason which seems to confuse people and one that is a bone of contention between the banks and the customer. Should an amicable and favourable solution not be reached, you can refer you case to the Financial Ombudsman Service (FOS).
An advised sale is one in which the bank or lender has expressly recommended the product as being suitable for you and your current circumstances.
The rules have now changed as a result of the confusion and complexities between advised sales on ALL financial products, not just those that are PPI bases products.
The bank or lender must now tell youin writingwhy the product in question is suitable for you and why they are advising that you purchase it.
With PPI this did not happen. Some banks or lenders may have provided this information in written format but more often than not, these types of sales were carried out over the phone.
There is a difference between a 'sales' call and advising a customer that the product if right for them, but for those customers attempting to claim their money back for PPI, the banks are refusing.
Their reasoning is that the customer was not advised, and the customer did not have to purchase the product. The calls, the banks say, were marketing calls with the customer given all the necessary information to make an informed choice as to whether this was the right product for them, or not.
However, FOS who has been looking into thousands of PPI cases of this kind, have not always agreed with the banks.
The argument for PPI compensation in these cases has hinged on how much information the bank representative knew about YOU before they called.
For example, a clear-cut case is selling PPI to someone they know is self-employed. PPI was not the best product but the marketing call failed to amplify to the customer that they were not as well covered by this policy as they thought they were.
Here at Scottish PPI Claims we deal with all genuine PPI compensation claims and can help you, no matter how you were mis-sold the product.