The amount of trouble that the people faced due to the PPI scandal is simply immense. The scandal runs in billions of pounds and there are millions of people who have lost a lot of money due to it. The people are now able to get back their money by claiming for PPI Claims, but it is of course, an unnecessary hassle that they are made to go through.
Also, the people who had PPI were never able to enjoy its benefits because the banks or their agents misinformed the customers about its benefits coverage or eligibility. Most of the people who purchased PPI and paid for its instalment could actually never receive its benefits, because the PPI was so designed that it had very complex clauses for payouts. So, in most cases the payouts could not happen, while the bank continued to collect the instalments from the customers. This made PPI one of the most profitable policies of the bank.
Here are some of the problems that people had to face when they were mis-sold PPI –
- When people bought PPI, they thought that they had insurance on their loan that will keep them save. Problems surfaced when they came to know that their PPI was rejected and they still have to pay for the loan even if they do not have the ability to do so. People did not know that their PPI was invalid.
- Many lenders would club the loan and the PPI amount without explaining it to the borrowers. This meant that they were paying higher interest on their loan amount as well as the PPI.
- Many people did not actually know that they could reject the PPI. If the people had the means to pay for the loan and did not need the PPI, they could simply reject it.
- In many cases, the PPI was sold to the people who already had PPI, so customers were made to pay twice for it.
These are the major inconveniences that the customers had to face due to the mis-selling of PPI, and which made PPI scandal one of the largest ever in the financial history of the country.