Press Release Summary: Even though the problem of mis-selling of payment protection insurance has been uncovered, the problems still exists to a great extent. One third consumers will not be able to claim on their policies, study reveals.
Press Release Body: Even after a crackdown that was made against the mis-selling of the payment protection insurance for cover against the personal loans, the problem is still persisting on a very large scale, according to the consumer campaign officials.
The same verdict came from three different offices, the Office of Fair Trading, the Competition Commission and Which?, the consumer campaign group. They all owned up that they had failed to realize the severity of the problem.
Over the past five years, it has been estimated that around six million customers have taken the payment protection insurance against their personal loans and other forms of credit. Out of these six million, one third have taken up a cover and are paying for which they will never be able to make a claim on. The PPI is a cover that is made for the people to meet payments on bills, goods, and debts in case the policy holder is not able to carry on his work due to illness or redundancy.
An official from the consumer group Which? says, "everyone always knew that customers were being mis-sold the payment protection insurance. However, what has amazed us is the scale at which this has been happening. If everyone from the salesperson to the bosses is chasing their personal profits, then what fails here is the sense of responsibility to the customer?
Against this, the British Banker Association replied that many people benefit from the cover as well. There is an alternate plan as well in the policy which changes it in case of any circumstantial change with the policy holder. The commitments that they have made can still be fulfilled even if they lose their jobs or become prone to illness. So the consumers should not be discouraged in taking up PPI. Instead, they should just be more careful while choosing the policy.
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2022
