There are many scandals related to personal finance, which are considered as the worst gossips in the world of finance. One of such worst scandals is the improper selling of Personal Protection Insurance, also known as PPI. Many victims fall to this illegal mishap, which is conducted by some unauthorised insurance providers, and some customers wake up from their mistake and take immediate actions to get back their PPI, which was missold to them.
Payment Protection Insurance (PPI)
There are many people from all around the globe, who do not know what exactly is PPI. If you are also one of such, then here is a brief introduction to the concept.
Payment Protection Insurance (PPI) is actually a type of insurance policy, which are offered to only such people who have applied for personal loans, mortgage, finance for purchasing costlier items, etc.
There are some cases where the money borrower fails to make the monthly payment before the due date, because of many issues such as illness, met with an accident, experiencing financial shortages, etc. PPI, which such borrowers claim alongside other loans, will act as the saviour of the day and cover such monthly instalments on their behalf. Such insurance policy is usually offered in both government and private sectors from where you can apply for loans, while purchasing a vehicle and home, or pursuing higher education.
Since the employees, who exclusively deal with selling insurance policies and fail to reach their monthly target. Therefore they usually follow the idea of throwing some souvenir with their policy, in the form of PPI. The main goal of the employees working for financial institutions is to reach their target, and hence they try and attract more customers in the form of missold PPI.
The Financial Services Authority (FSA) usually keeps a closer eye on such institutions, which offer finance in the form of loan to the public. They even follow the routine of monthly visit to almost all such institutions, so as to segregate the number of missold PPI in that month. By doing so, they get a clear idea of how many calls to expect from the customers looking for reclaiming their PPI in that month.
When the scandal of improper selling of PPIs was new, only some banks and institutions were targeted by the FSA. As the idea became popular, almost all banks and financial sectors started using this tactic, which resulted in receiving warning and many of such institutions were forced to shut down.
If you are not sure whether the PPI that you bought is a genuine or fake one, then feel free to visit http://www.freeppicalculator.co.uk to get it checked.