How PPI Scandal Became As Big As It Became?
PPI Scandal is one of the biggest scandals ever and it became so big because the people didn’t take interest in what the banks were doing. People trusted the banks blindly and this is what the banks took the advantage of. The banks added PPI in the mortgage, loan and credit card, and the banks’ agents did all they could to ensure that the customers brought it. The agents never told the customers about the PPI and the customers never got to know about it.
Many a times, they were told that buying PPI is compulsory, and many a times, they were not even told that PPI is added to their premium. There was hardly anyone who has ever got the benefit of the PPI coverage, because it had very complex coverage clauses, which in a way made sure that very few claims are ever successful. In simple terms, it was a financial product that could have been useful, but banks made it impossible. Here are the few basic reasons why PPI scandal became so big -
People were unaware about PPI.
The banks were making profits from PPI and didn’t do much to raise awareness, and wanted to continue selling it as it was.
The representatives of the banks told lies and suppressed information from customers in order to make sales, on which they got huge commissions and incentives.
Lack of awareness among customers also played a huge role.
The desperation to get loan, credit card or mortgage loan also blinded many customers who blindly accepted PPI. This is why many customers still wonder as to have I got PPI or not.
PPI scandal is one of the biggest scandals in the financial history, and it became so big because of a reason. The above mentioned are just a few of the reasons why PPI scandal became so big. The people just didn’t know that the banks were looting off millions from their pockets without them knowing about it. The lack of awareness played a huge role in making PPI scandal so big.
One other reason that contributed heavily to this is that banks and their representatives made millions from the sale of PPI. While the banks made profit, the agents and the representatives were also having huge incentives on each sale they made. As everyone were making profits, there was no reason why banks or their agents would blurt out the truth behind the large scale mis-selling of PPI.
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