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



  • WishI'dReadSooner
    WishI'dReadSooner Posts: 1,716 Forumite
    I also think the same applies to extended warranties.
    I worked in a well known now defunkt store for a time, many years ago, as a salesperson. On ALL electrical items we had to offer/persuade people to buy extended warrenties. We also had to sell 50% or more to reach our targets. Very basic wage (If I remember rightly it was under minimum wage BUT with commission you'd be over minimum wage) and meeting the targets meant you got your commission. IF you didn't sell over 50% of the electrical items with extended warrenty then you'd have a warning & possible dismissal.

    I utterly loathed extended warrenty items. I KNEW they were extremely bad value for the customer. I resorted to finding out the cheapest prices from other retailers on many products and whispered to the customers that they'd find the same item cheaper elsewhere. It was the ONLY way I kept my job. I was good at selling and if people wanted the extended warrenty then fair enough, I wouldn't try to dissuade them from buying it. I initially did sell the warrenty successfully but my conscious got the better of me.

    I actually pity most of (but not all) the poor salespeople who have to resort to trying to pressure people into buying these warrenties. Just remember their position might be at risk if their targets aren't met. Don't get too angry with them, they often are under extreme pressure from management to sell this, just ask to see their manager (unfortunately they too have to reach targets for sales on these) OR buy it with the warrenty if you feel sorry for them & then cancel it immediately. If I remember rightly you have either 14 or 21 days to cancel.

    I think it's dreadful that many companies insist on their salespeople selling these especially when it might mean their sales staff could lose their position if they don't meet the targets set for these sales. It's a very similar scenario to PPI's and should also be looked at.
  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
    Combo Breaker First Post
    Since when have the FSA regulated the public?

    It depends what you mean. It has prosecuted members of the public for insider dealing.

    My point is, though, that the FSA should not have rules, or permit FOS to work in ways that allow consumers to make fraudulent complaints with impunity.

    In fact, it seems that an IFA can at least make provision within his client agreement to sue a consumer who makes a fraudulent complaint (or if an ambulance chase does on his behalf). It is difficult because it must ensure that genuine complainants are able to pursue those complaints - even if they are not upheld but it can be done.

    I have seen a number of these pass FSA "treating customers fairly" assessments and I think the numbers are likely to increase.

    So if you are thinking of using an ambulance chaser, make sure you know exactly what you signed up to with the adviser and make sure the ambulance chaser does not do or say anything which would allow the adviser to sue you.

    But as I say, don't let that stop you making genuine challenges about the advice you were given.
  • SecretBanker
    I worked for banks for 10 years as a financial adviser most recently with 'Rats Nest'. Although I never missold anything I was certainly put under tremendous pressure to do so to reach sales targets by branch, area sales and regional sales managers who gave a toss about customers as long as targets were achieved. In the end only those who were little more than con artists achieved targets and many good advisesr who felt this was wrong left, became ill, or were sacked. Anyone who didn't achieve targets was "not treating customers fairly", "not meeting all their needs", "failing to protect your customers" and the matter treated as 'underperformance' with the advisers pushed down the 'disciplinary' route. I saw three people have nervous breakdowns because of stress and one attempt suicide and two heart attacks because of the not so subtle pressure and bullying culture to 'succeed'.

    Anyone who goes to their high street bank or building society for advice needs their head examining. Always use an Independent Financial Adviser and don't moan about paying (You pay a solicitor or doctor and IFA's are more tightly regulated) It will usually cost you less than you would have paid at the bank, and yes bank's advice is NOT FREE look at the charges. The advice will be unbiased and the ongoing service will be much better.
  • ididit
    ididit Posts: 1 Newbie
    I worked for a high street bank between 2000 and 2006. In that time we where so pressured to sell over 88% of our (already expensive) loans with PPI and other insurance products. The fact that our bonuses and other incentives where so highly geared around this insurance meant we all had to learn little tricks in order to make the customer have the insurance.
    If only I could let them know now, what a rip-off it was.
    Tricks and lies we used included:
    You have to have it to set the loan up but can cancel at anytime.
    Show them a different figure that what it really cost (plus they where charged interest on it)
    Say it was compulsory.
    Make out it would cover them for everything and not explain the exclusions.
    Never tell them what it costs, it was just automatically included in the quote.

    The bank I worked for is no longer around, but I wont mention its name. I urge people to check loan documents or get copies of them even if they dont think they have any cover. There could be some insurance included which you where unaware of.
  • lordash
    lordash Posts: 62 Forumite

    1. Get job in bank sales
    2. Take out loan with bank for high amount over a short term, with PPI
    3. Refuse to meet targets and lose job with bank
    4. Claim PPI due to newly found unemployment
    5. Live off loan and spend next year doing nothing, safe in the knowledge that the PPI will cover your loan repayments

    Although, there is probably some disclaimer about not being able to claim PPI if you have been sacked
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  • planneranne
    I have so clearly been mis-sold PPI in 2006. Firstly, I was ill with breast cancer and told Hfs Loans Ltd this, plus I am(and was at the time) self-employed . I verified my status with a letter from my accountant. Both these things preclude( and always have ) being sold a PPI.
    The bank is playing very hard to get, but that is predictable. However I have real issues with the company-Belmont Thornton- who I commissioned to take on the case 9 MONTHS AGO.
    Belmont Thorton are trying to tell me this is NOT a straightforward case, when clearly it is. Does anyone else have this problem? You would think they were working for the bank and not for me!!!!
    I am not in a position to change companies at this stage as doing so would cost me their time being paid to them for the so-called work done.
    I am at the end of my tether, as I am still ill and desperately need the money that is lawfully mine.
    HELP ME if you can. Thanks for reading.
  • src007
    src007 Posts: 420 Forumite
    If I were you, I would send a hand written letter to the bank explaining your situation, saying that you would like to add extra information to the complaint Belmont Thornton started for you.

    You just need to write, what you've put on here. Try to add your 'complaint reference number' to make sure it gets to the right place (you could get this either through the claims company or by telephoning the lender directly).

    It may be that the bank are being difficult however then again, Belmont Thornton may not have explained the complaint very well casuing the delay? If you have documents showing your employment status at the time or medical information about your condition at the time, the more you provide the better.

    Its at least possible that when your lender gets the additional letter from you, the complaint handler at the bank, may give weight to the extra info?
  • Farmiloe1980
    Farmiloe1980 Posts: 37 Forumite
    What about the small print which probably said that you can't claim for all the reasons he wrote in his report.

    Didn't this cover the bank?

    Just wondereing as i'm looking into a mis-selling of policies by a friendly society in which the salesman came into the Royal Mail office where i work and sold policies as savings policies but they are in fact life insurance/assurence policies.

    So far there are 22 people in our office who all feel they have been mis-sold, - that is out of the 22 people i have only spoke to about it!
  • collingbone614
    collingbone614 Posts: 180 Forumite
    Good article. I worked in a call centre (for a major internet provider) and this sort of thing was deeply ingrained in the culture - with team 'boards,' pressure to push certain things onto the callers, being told that you're not 'making the grade' if you aren't selling rubbish products hard enough. The stuff that happened there wasn't remotely in the same league as the PPI situation but, combined, this sort of !!!!!!!! seems to comprise a large amount of UK PLC income.
  • 2sides2everystory
    2sides2everystory Posts: 1,744 Forumite
    edited 4 May 2011 at 10:33PM
    lordash wrote: »

    1. Get job in bank sales
    2. Take out loan with bank for high amount over a short term, with PPI
    3. Refuse to meet targets and lose job with bank
    4. Claim PPI due to newly found unemployment
    5. Live off loan and spend next year doing nothing, safe in the knowledge that the PPI will cover your loan repayments

    Although, there is probably some disclaimer about not being able to claim PPI if you have been sacked
    Yeah there is a disclaimer if you complain and get sacked on trumped up misconduct. More likely though is that you will be stuffed long before you have even got started on this plan because before you can say "Waiting Period" they will have you on a Performance Improvement Plan (thats a PIP for no PPI!) if you don't hit the ground running i.e. instantly (mis)selling and whilst on probation a PIP is likely to come with a reminder warning that you can be sacked at any time unless you shape up and "pass probation". You can't buy cover if you know of a reason why you may soon be sacked and a PIP on probation is exactly that. Add even if you do get your first premium paid in before that happens you then have to survive long enough to have been continuously employed for 6 months. You think you can survive in that environment without
    (a) misselling
    (b) complaining about the pressure to missell ?
    If you can you must be sainted or superhuman, or more likely plainly deluded which is what most of them end up as if they are still in the business and it is the reason that most of us hold at least one financial product or another that is missold.

    Thank goodness the word is out about PPI and that here in this thread it is almost fashionable to fess up.

    Now there's only the next big scandal to unravel ... I reckon it'll be the great pensions fund management charges swindle. If I can keep my money with instant access in a current account or even a deposit savings account for nothing, then why the hell should I be paying any fund manager and letting he or she suck dry my pension funds locked on deposit for so long that I might die before I can withdraw them oh so slowly?

    We have been asleep people while crooks have been scheming.
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