Diana Metz`s Finance Blog

There’s a ‘one size fits everyone’ approach to the sale of the policies.Varied customer response groups and regulatory bodies have shown that as many of eighty five % of borrowers who try to claim are flat out refused.mis-sold ppi is the largest fiscal scandal to hit the lending industry in living memory. there were, and will definitely be billions paid out in compensation for obvious overcharging on bank accounts.The compensation for the mis-selling of PPI will make this look like pocket change. For years banks have run an elaborate con game by selling payment protection policies alongside loans. While the banks have pocketed ridiculous profits, the policies themselves have frequently demonstrated to be pointless.There are a multitude reasons for this.But the largest reason is that the policies the banks sell are not engineered to meet the individual wants of each borrower. Instead they are sold to grasp the maximum profit for the bank.This means a forty year old ecclesiastic employee in stable work could be offered a matching rate and policy as an eighteen year in their first job.The policies are patently not designed to offer protection to the borrower but serve only to extend the banks’ profit. Far worse, the policies are sold to clients who will never, ever be in a position to claim. Here is where the term mis-sold PPI has originated from. As an example, PPI policies are designed to cover loan payments for the borrower in the event they’re a participant in an accident, become ill or are downsized.This sounds like a good idea BUT if the borrower can’t prove revenue or have changing takings any claim on the policy will be refused. Therefore if you’re self employed, a company director, a transient, jobless, a housewife or employed on short term contract your claim will surely be refused.All of the cash you’ve been charged for the policy and all of the interest you have paid is the same as just throwing your money away. Your deposit account is much thinner but the profit for the bank just gets fatter and fatter.Thankfully the entire practice has been barred from May 2009. But now could be the time to get everything back you’ve been overcharged.