PPI scandal is one of the biggest in the financial history of the United Kingdom, and even though the product as such wasn’t that bad, the malpractices followed by the bank and their representatives are what made this scandal as big as it became. The PPI, if you look into its fine print is actually a good product that would help the people in the time of need. This is the reason why so many people buy it even today. However, it is absolutely necessary that people understand its terms and conditions before purchasing ppi form. It is in the market for purchase till date, but few of the things have changed as to how banks sell it.
Here are some of the ways in which PPI scam changes the way lenders can sell financial products now –
Banks Cannot Sell Anything Other Than What you Ask them For
When you approach a bank for a particular loan or credit card, they will only discuss that particular product. They cannot sell you other products, especially the insurance ones.
Stricter Rules about Advised Sales
A number of lenders used to sell the PPI by making the buyers believe that they were advised to buy it. Now, the lenders have to give it in writing in case they advise you to buy a particular product.
Provide More Information
The lenders need to be open and transparent when selling policies. All the terms and conditions need to be properly explained to ensure that the buyers are fully aware of the products that they are purchasing.
The people who buy PPI should be fully aware of its terms and conditions and whether it applies on them or not. They should check as to whether the coverage is applicable for them or not, and whether they would be able to benefit from it if at all it is ever required. The banks are asked to make the customers sign the document stating that the customers are buying the policy after being fully aware of its clauses, and this thereby makes the banks immune from any claims in the future whatsoever. Any kind of mis-selling is seriously punishable and the laws governing such mistrust by the banks and other financial institutions have changed considerably to protect the interest of the consumers. So, buy PPI only if you need it and you are sure about it.