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MSE News: A confession: I've mis-sold PPI

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MSE News: A confession: I've mis-sold PPI

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
67 replies 7.6K views
MSE_GuyMSE_Guy MSE Staff
1.7K posts
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
This is the discussion thread for the following MSE News Story:

"An MSE reporter exposes how consumers were tricked into taking payment protection insurance, from his days at a bank ..."

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Replies

  • edited 3 May 2011 at 6:42PM
    di3004di3004 Forumite
    42.6K posts
    edited 3 May 2011 at 6:42PM
    Thank you for sharing this Guy.

    I have a few family members that have in the past worked for banks and it was the same for them too, and are happy with the recent judgement that the BBA failed.

    Hoping for a good outcome on this for consumerists.

    Seven days counting from tomorrow to the deadline of the decision of the appeal folks.

    Cheers.
    The one and only "Dizzy Di" :D
  • hieveryonehieveryone Forumite
    3.8K posts
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
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    I've worked in a bank call centre in the past also in their credit card department, and my experience matches this. I knew then, at 20 years old, that it was wrong and refused to put on the hard sell. Needless to say I was sacked.


    Bought is to buy. Brought is to bring.
  • valid_2valid_2 Forumite
    1 posts
    Ada White
    golfleading customer service
  • michaelsmichaels Forumite
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    I would not disagree that PPI insurance was miss-sold and that the sales staff were routinely incentivised to do so but in reality it is the same in all areas, shop sales staff are trained to maximise sales, not worry about what garments actually suit their customers or whether they can afford what they are buying.

    By all means fine banks and other organisations where they have done wrong and mislead consumers but I don't think it is possible or desirable to try and write regulations to protect every consumer from making a single ill-informed purchase. The answer has to be education so that consumers think about what it is they are buying and how much it will cost them when they buy.
    I think....
  • MSE_MartinMSE_Martin MoneySaving Expert
    8.3K posts
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    michaels wrote: »
    I would not disagree that PPI insurance was miss-sold and that the sales staff were routinely incentivised to do so but in reality it is the same in all areas, shop sales staff are trained to maximise sales, not worry about what garments actually suit their customers or whether they can afford what they are buying.

    By all means fine banks and other organisations where they have done wrong and mislead consumers but I don't think it is possible or desirable to try and write regulations to protect every consumer from making a single ill-informed purchase. The answer has to be education so that consumers think about what it is they are buying and how much it will cost them when they buy.

    Im afraid I disagree on some complex financial products. You must remember here one of the major categories of misselling PPI (not in guys piece) was adding it without telling people. Lieing that it was compulsory or indicating they would be rejected from the loan without PPI.

    That type of misselling isn't let the buyer beware - its fraud
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • edited 3 May 2011 at 1:16PM
    PaulgonnabedebtfreePaulgonnabedebtfree Forumite
    2.7K posts
    edited 3 May 2011 at 1:16PM
    MSE_Martin wrote: »
    Im afraid I disagree on some complex financial products. You must remember here one of the major categories of misselling PPI (not in guys piece) was adding it without telling people. Lieing that it was compulsory or indicating they would be rejected from the loan without PPI.

    That type of misselling isn't let the buyer beware - its fraud

    Yes indeed Martin. Unlike Guy, I will name a company - though I'm sure they aren't the only one. I'm going back about 10 years to the days when I was contacted regularly by MBNA to buy PPI for my credit card with them. I always declined. I got fed up with these calls - sometimes as frequent as two weekly. I instructed them to remove me from their telesales database. It took three attempts but finally the calls stopped after I contacted the customer service dept and asked them if they still wanted my business. Cards were easier to come by then and they would have been no loss.
    Fortunately, I am one of those customers who does check their bills. I discovered that they had started taking PPI from my account - against my express wishes. That was when I really lost the plot. I just phoned, cancelled the account and demanded my money back. Yes, I was a bit rude. Not proud of that but sometimes it's the only language they understand. They did actually manage to bribe me to stay with them. I got the money back and a financial sweetener. It should never have got that far though.
    At the time I took the view that adding PPI was probably a clerical error because we didn't really have websites where notes could be compared. I know better now.
  • mrmajikamrmajika Forumite
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    I too sold PPI on both loans and credit cards for a high street bank via their call centre. I joined in 2005 and by that stage the selling was quite heavily regulated.

    We were targeted to 40%. That is, 40% of either credit cards or loans sold should have PPI attached. I have to say that most months I met my target. Our commission doubled if we sold the PPI on top.

    By that stage there was a clear structure on how to sell it and we did have to ask about employment, medical conditions and other exclusions, however, everyone still went for the hard sell and pushed it onto people who were too polite or weak to say no. I remember them changing little bits of the script to make it less obvious that it wasn't compulsory. For example, initially we said "this insurance is optional" which they changed to "this optional insurance...." and then tagged it onto another piece of information. All still within the FSA rules at the time, but nevertheless designed to trick the customer.

    I always remembered that I and many of my colleagues took advantage of the preferential staff rates on loans. Interestingly, I didn't know of one bank employee who had opted to take the insurance.

    I'm not especially proud of my work at the bank, but I can't say I lost much sleep over it as, selfishly, I was good at (mis)selling and made a small fortune from it.
    Whilst my posts do not constitute financial advice, I am always, without fail, 100% right! :D
  • dunstonhdunstonh Forumite
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    The way the banks sold the products over the years leaves little to be desired. The problem is that is is backfiring on those that havent mis-sold. Our compliance company has said that around 1/3rd of the complaints they are getting now are try-it-on complaints rather than genuine complaints.

    You now have people that think they have PPI when they dont and stick a complaint in. You also have others that think insurance is a bad thing even when the insurance is not PPI or if its is PPI but suitable.

    Whilst the big faceless corporates can get away with complaints, the small local firms end up paying for it as the insurance premiums we pay are based on claims history and some individuals could find themselves sacked and unable to get a job as their complaints record of individuals at that level can follow them around (the basis of no smoke without fire can be just as damaging). Plus, if they go to the FOS (which many do) the small local firm suffers a £500 charge even if the complaint is rejected. Too many of those could put a small local firm out of business.

    So, whilst the banks may have told lies and mis-sold. Many consumers are just as happy to tell lies and make fraudulent complaints as the opportunity arises. To assume just one side is the big bad is wrong.

    Where someone has been mis-sold they should complain. Where someone has not been mis-sold they should not complain.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • JonbvnJonbvn Forumite
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    I think the pressure by sales people to purchase extended warrantees for some products does bear some realistic comparison to PPI misselling.

    I recall buying a US style fridge at well known electrical chain. When I refused their extended warrantee, the sales staff and manager were quite snarky - no doubt because there was no commission for them!
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • bubbles0169bubbles0169 Forumite
    6.2K posts
    i too was guilty of selling PPI and (sometimes worse) store credit!!
    i was a young whipper snapper straight out from school, told to sign up as many customers as i could to the store card(my favourite line was-would you like to save 10% off your purchase today?) i would always ask if they wanted PPI i cant remember how many said yes to no it was a while ago, all i understood about it was that it 'paid your bills if you were out of work'
    i do cringe about it when i think of all those i signed up because i would get a prize every couple of months for signing the most up from our branch :(

    im now guilty of selling 'overpriced' groceries and getting slated for stopping the 'giving something for nothing' routine ;)
    I am not bossy I just have better ideas:p
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