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Archive for tag: PPI Mis-Selling Scandal

Unwilling to Complain – Did Our Politeness Help Fuel the PPI Mis-Selling Scandal?

Decades ago, people did not use banks very much. The economy was a cash one. People were paid in cash and goods were paid for in cash.

Credit and loans were unheard of. Banks were used for savings and investments, rather than the everyday banking we are accustomed to.

But times changed and rather than a weekly pay packet, employers began to pay a monthly salary directly into employee bank accounts.

Soon it became the norm that everyone had a bank account. Technology changed the face of banking to make it what it is today.

We move money between accounts via secure online banking portals, and we can transfer money worldwide with a click of a mouse.

But there was a problem with this. We trusted the banks.

On one hand, this is no bad thing but on the other, it possibly contributed to the fertile breeding ground for the mis-selling scandal that we now know as the PPI mis-selling debacle.

Lack of complaints

Consumer organisations have noted that at times in the selling process, there was a 'lack of pressure'. In other words, there was no one person or company, organisation etc. calling in to question the methods or messages banks were using to sell PPI (and other products and packages too).

In some respects, this lack of complaining from consumers could be because they didn't know that what was happening was wrong.

But the whole compensation process was kick started by a consumer complaining that he didn't want or need the PPI insurance the bank was telling him he had to buy. This one complaint back from the early 1990s started the ball rolling.

As the PPI compensation process is ongoing, consumer organisations have made some eye-opening discoveries about why it happened in the first place -

  • No competition - there was no insurance policy similar to PPI so banks and lenders could charge what they want as consumer had very little else to compare it with
  • No challenge - banks seemed to have the ability to do what they wanted when they wanted and how they wanted. The banking regulator at the time had no power to force through changes. It relied on banks agreeing with it and implementing a change of their own accord.
  • No accountability - lack of complaints, lack of real power to force change meant that there was little accountability in the system. Banks didn't feel they had to tell their customers that they were making 87% profit on selling them an insurance policy they really didn't need…

Complain NOW!

Making a claim for PPI compensation is your way of adding your voice to the thousands of other complaints about PPI and the way in which the banking industry treated its customers.

Make your stand today and start claiming your PPI compensation.