Within weeks of the PPI claims deadline a former business manager from a high street bank has revealed the tactics used to mis-sell PPI to tens of thousands of people.
Anyone who believes they may have been mis-sold a policy must make a claim before midnight on August 29th or lose the chance forever.
Millions of policies were mis-sold over three decades and the UK finance industry has already paid more than £35.7 billion in compensation.
Consumers were sold an insurance product they didn’t want, didn’t need or couldn’t have made a claim on because of exclusion clauses which were not explained to them.
Now the manager has revealed in an amazing interview the tactics the banks employed to make their sales:
- They were incentivised to sell on a performance related bonus system
- Encouraged to sell policies even to other members of staff whether they needed it or not
- Senior management only wanted sales targets met without worrying about how it was done
- Staff not meeting sales targets were talked to by senior members of staff
- Failing to meet targets could result in withdrawal of individual and team bonuses
The former manager, who wished to remain anonymous, said: “The main tactic used to sell PPI to customers was a presumptive sale. What made the sale presumptive was that the terms would be tailored to include the insurance within the customer’s budget, instead of offering what should have been an optional insurance as extra.
“After speaking to the customer about their budget, the affordability for borrowing would be tailored to include PPI within that.
We’d provide details of the benefits, but not always explore with the customer if PPI was needed based on any existing cover or employer benefits the customer might have already had.
“Some advisers may not have discussed exclusions in any great length.
The difficulty faced here, is that you trust the people higher up that the products and services offered were ultimately good for the customers.
“Reflecting back, you assume that whatever you’re provided with to sell was researched by senior decision-makers and it’s the right thing for the customer.
“PPI did also do what it’s supposed to do for many and these people were really grateful they had it when times got hard for them. But, the process of checking whether or not people needed PPI probably wasn’t robust enough. It’s a bit of a Catch-22.
“My advice to anyone who isn’t sure they have a claim, or to anyone who can’t be bothered to make a claim, is that it’s definitely worth doing at least the enquiry forms with banks or building societies – especially if you took out a secured or unsecured loan.”
How was it mis-sold?
Sale of policies was governed by a number of exclusions and conditions which should have been checked by the vendor before a sale was completed.
You were possibly mis-sold if:
- you had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
- you were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
- you received full sick pay from your employer
- you were already covered by another policy
- you were pressured into buying PPI or told you must have it
- you were promised a cheaper rate if you bought PPI
- you were told your loan or credit application was more likely to be accepted if you bought PPI
- you were advised to buy PPI that did not suit your circumstances or needs
- you were self-employed, unemployed or retired but advised to buy PPI
- it was not made clear that you would pay interest on the PPI if it was added to your loan
- it was not made clear that the PPI would end before the loan or credit was repaid
- PPI was added without telling you
- the amount of commission paid on the sale was not revealed at the time
Time is running out!
The deadline is just weeks away, but it’s not too late to make a claim if you think you were possibly mis-sold, even if you don’t have any documentary evidence to back it up or can’t remember all your policy details.
If you think you may have been mis-sold you need to do something about it soon. As Arnie says in the Terminator adverts: “DO IT NOW!”