The entire country was in shock when the PPI scam was finally unearthed, but it came as a no big surprise to many people. The people who were connected to the bank and the financial industry have been manipulating the consumer behavior through their sales strategies for years, and the PPI scam just highlighted it prominently.
The banks made millions and billions through the scam for sure, and even though it is doing its due by paying back the refunds, it did one good and one bad thing for the industry and the consumers. For the banking fraternity, it lost the blind faith the consumer had on it, and for the consumers it opened their eyes wide enough to ensure that they check and see thoroughly whatever they are putting their money in, the next time around. Here are the few reasons that would take you closer to understanding why PPI became such a big scam:-
• The agents and the bank’s representatives were getting high incentive on each sale they were making.
• The agents and the bank’s representatives were promised high commissions on selling PPI and in greed of earning more commissions, the interest of the customers were sidelined completely.
• The banks were making enormous profits from the sale of PPI, because even when the component was low, there were very few claims coming and the expense of running this instrument through was also very less. Moreover, the tough and complex clauses in this financial tool were out of reach of understanding of common people, for which sometimes even the people who could have claimed, did not or could not.
• The majority of the population was unaware about the PPI, and didn’t know much about it. The lacks of consumer awareness also lead to the wide scale selling of PPI through the years.
There are many reasons that contributed to why the PPI scam became such a huge one. And, even though the above reason contributed majorly to the whole scam, the reasons are far more complex and deep, and it ran through the entire system which at the time was dipped in greed and money. However, the lack of awareness among the consumers also played a major role for the scam to last this long. If you are one of the victims of the scam and have lost your money over the years, make sure that you visit www.howtoclaimppi.org.uk and find out the amount of money that you can claim. Once you the amount, it certainly will motivate you to get started with claiming your money as soon as you can.
Gagan is a writer, author and speaker on finance, investment and insurance, and also writes and speaks on PPI scam as well frequently. His speeches and write-ups have helped his audience to understand how to claim their PPI refund easily and quickly.