If somebody gets an offer that he need not pay his debts for the case he lost his income for a low monthly fee, then this product will be a good selling product. On the other side insurance companies and their agents are promising you the heaven on earth to get your signature on the contract. The insurance business is like each other business a for-profit company. So the insurance companies are not enjoying in spending more money than they earn on a specific insurance. The profit need to get more and more without any regard to their customers. For this they are inventing terms and conditions, which are for a normal person not understandable. In this terms and conditions are the obligations of the customer very clear defined – he has to pay for the insurance. The rights of the customer are already not so clear defined. The cases where the insurance company has to pay are very restricted. These restrictions are hidden very well in the terms and the conditions and written in a jargon, where even lawyers can have different opinions have about them.
Insurance companies and their agents are only salespeople. They are praising their products and mostly earning per sale. For this they are interested in a fast sale and not interested in giving a comprehensive customer consultation.
Insurance is only functioning if a lot of people are paying for it and only a few cases will happen where the insurance need to make a payout. For this the insurance will find thousands of reasons why your case is not covered by the insurance.
With the economic downturn in Europe a lot of people lost their jobs and liked to use their PPI insurance. At this time a lot of them got it that they have paid for nothing because valid have been the written conditions and not the exaggerated promises of the insurance agents. The insurance companies acted like expected and rejected as much cases as possible. Their customers used all instances and options which they had to get for what they paid for. As very much people have been victims of this practice they government installed the financial ombudsman service with this cases.
UK Financial Services Authority - What is payment protection insurance?
UK Financial Services Authority - How to claim for mis-sold PPI
UK Financial Ombudsman Service - how to complain - if you think you've been mis-sold PPI
UK Financial Ombudsman Service: PPI - your case with us:
Seven out of every ten complaints that people refer to us at the ombudsman are about payment protection insurance (PPI). And with a thousand new cases still arriving every working day, this is our biggest job ever.
With this volume of complaints, it’s probably going to take us years, not months, to sort out all the issues involved. This is why we have significantly scaled up our operation.
The Office of Fair Trading was responsible for protecting consumer interests throughout the UK. It closed on 01 April 2014, with its responsibilities passing to a number of different organisations including the Competition and Markets Authority (CMA) and the Financial Conduct Authority.
For advice or help with a consumer problem, contact Citizens Advice.
In a good shape are the call/contact centers, which have been selling PPI under the name of their client and with a client provided script which they still have. In this case the client is responsible for the refunds to their customer.
All the call/contact centers, which have been using their own name for selling PPI are in a bad shape. The insurance will ask back their paid commission for the bad sales and has a good chance to win in front of a possible law court.
- The written word is counting in the case of a dispute more than the spoken one.
- Confirm all phone calls by letter or email.
- Keep a copy of all documents and communications for at least 8 years on a save place.