Many lenders and insurers are paying out compensation to their clients due to mis-sold PPI complaints filed against them. A lot of their sales people did not fully explain the PPI (Payment Protection Insurance) added to the borrowers’ loan or credit. The borrowers were taken out cover and the representatives did not fully explain the details of the policy to them.
It is unbelievable how customers have been mis-sold PPI policy by the sales representatives. The criteria of the policy were not explained to them in depth. Sellers did not take time to explain the full and important details of the policy which caused a massive problem to the financial institutions. Customers found that when they needed to use the insurance, it was completely useless for them and taking this policy which they paid over years was completely pointless.
Different types of mis-sold insurances were brought to the Ombudsman’s attention and majority of them were complaints regarding mis-sold PPI related products. Most of the borrowers were pressured by the sellers by telling them that the PPI policy was compulsory. Customers were told that the insurance policy was needed for their mortgage loan, car loan, credit and store cards and other products which needed financing. Blackmailing to customers also happened in some cases and the terms and conditions were not brought up to them.
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