Mis sold PPI Mis sold PPI On The Increase

The misselling of payment protection insurance has rumbled on for several years. However, I’m still amazed that with the amount of press reports and media coverage that I have seen more people are not aware of this rip off insurance. I was speaking to a friend the other day and he was able to shed a little light on this for me. He said the reason that I was surprised that more people had not heard about missold ppi was the fact that I was involved in the industry.

He said technology was a prime example of this with something like the mobile phone. When you see someone who is struggling to use a ‘simple’ application like a text one forgets how frustrating it was when you used a mobile phone for the first time. As time progressed the use of a mobile became easier and you could not understand how you managed without one before. 

When you put this into context its hard to believe that someone who is now aware that they have been missold ppi are not putting forward a claim to get their money back This got me thinking about a related area where people would be incensed if they thought they were being ripped off and would definitely complain big time. Let’s think about this, payment protection insurance was sold alongside a loan even when people did not want it, could not use it or didn’t even know they had it. So to draw comparisons I thought I would come up with examples and consider if people would complain. 

One of the striking things about ppi is the fact that the cover lasts for five years even if your loan lasts 10, 15 or even 25 years. So would you complain if you booked a two week holiday was told you had to take travel insurance that costs around 20% of the value of the holiday but it only covers you for the first three days? What about if the insurance will not cover you for sunburn if you have ever been treated for sunburn in the past? How would you feel when you discovered many years later that the holiday you booked could have been a lot cheaper except for the fact that you had been sold expensive travel insurance that you didn’t even know you had. Perhaps you would also be upset if you discovered when making a claim that you and your wife were covered but the kids weren’t as they were too young to insure. Or how about when you tried to claim it was only the bags that were in your personal possession that were covered and not the suitcases that were loaded on to the plane or left in the hotel room. 

If anyone was to hear of constraints like this there would be a queue a mile long around the travel agents so it’s still surprising to me why more people are not complaining about missold ppi. 

This entry was posted on 21/06/2010 at 04:24 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.