Many people who have heard about PPI keep wondering what led to the PPI scandal and why it lasted for so long without anyone noticing it. The answer is simple and that is that the consumers trusted banks with their money blindly, and accepted what they say on face value. The banks are an authority as far as money is concerned and when banks say that buying PPI is a must to get a loan or a credit card, they generally accepted it without disputing, even when they wanted to.
Many a times, people were not even told that they are being sold PPI and at other times, it was sold to people who weren’t eligible or just didn’t understood what PPI was, not that the banks tried in anyways to make people understand what PPI was, as well. The banks were making and they liked the results and the profits they were getting and making, respectively, year after year. The agents of the banks were making huge money out of commissions and incentives on the sale of PPI, and this thirst led them to sell PPI in any which way they can, legal or otherwise.
Complete or limited lack of awareness among people about PPI is the other cause, and honestly, when you need a loan desperately, who cares about the fine prints anyway. This is the advantage that bank had, which they misused rampantly, customer after customer, year after year, unless one fine day the bubble burst, and how. Here are the few factors that made PPI scandal one of the biggest in the financial history of the country –
Lack Of Awareness
- People didn’t know what PPI was, and they didn’t try to know about it, even when it was clearly mentioned in documents.
Desperation Of Customers
- People in desperate mode to get loads didn’t bother to check what’s on paper, as long as they get the loan or credit card.
- People signed on whatever and wherever banks told, and this helped the other end.
Banks’ Illegitimate And Unethical Selling Techniques
- Banks knew customers were getting fooled, but looked the other side.
- Banks forced sell to many customers, and cheated many others by saying things not mentioned on paper just to make one more sell.
Agents’ Thirst For High Commissions
- Agents were getting fat pay checks with commissions, and they didn’t wanted to stop, but sell by hook or by crook.
These few factors are what contributed to making PPI scandal biggest in the financial history of the country, and made PPI an evil financial tool, once and for all. If you are mis-sold PPI and want to know how much you can get, visiting www.ppicalculator.co.uk would help.