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

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  • dunstonh
    dunstonh Posts: 116,664 Forumite
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    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!

    They are friendly society savings plans. Not life assurance plans.

    That would be one of the easiest complaints they could ever reject. There is no harm not understanding what you have got but it sounds like someone in your office is spreading misinformation and causing trouble.

    The fact that most friendly society plans are pretty naff is irrelevant. If you use a sales rep then you get what the sales rep offers. If you wanted best advice you should have used an IFA.
    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.
  • wonderwomanwend
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    When I worked at selling store cards the bank wanted more than anything to get customers to sign up for PPI - I'd been told to say "No balance - no fee" "- it won't cost you a penny if you don't have a balance!". What I didn't realise at the time was that even if your cleared the balance each month the cardholder would be charged a % for PPI - when I found out I felt dreadful as I had inadvertently mis-sold to so many people in my ignorance. I believe I was deliberately mis-trained to get the results the bank wanted. I worked in this HUGE organisation for eight years and felt my integrity had been 'used'. The last 2 years were hell as i didn't reach my targets, my salary was not 'capped' as I was 'under performing' and my line manager put me on a punitive action plan to get me up to 'standard'. Eventually I was made redundant/retired but I feel bitter as my pension is reduced as my final salary was much lower than other colleagues who broke the rules for selling PPI.
  • 2sides2everystory
    2sides2everystory Posts: 1,744 Forumite
    edited 6 May 2011 at 9:31AM
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    Let's keep this thread going - it is the single most refreshing initiative I have seen for a while on misselling.

    Don't be shy, we know there are tens of thousands of ex and existing high street bank staff, staff at stores, call centre staff and others who have worked through the PPI feeding frenzy at the banks that lasted a full ten years on full throttle.

    I saw some figures once that showed one bank was clearing £200M profit a year from PPI alone and behind the figures was a startling statistic - average total claim was something abysmally low like £135 i.e. even for those where the product worked, the benefit was in reality completely useless to the claimant and barely worth the time to submit the claim, but a salesman that sold a loan with PPI compared to without PPI sometimes got double the commission because it was worth it to the bank to pay that much up front. You can see why when PPI was disgracefully front-ended with interest immediately payable on several years premiums up taken right up front, and with premium rates at £0.70per month or £0.80 per £100 of outstanding credit card balance every month - cartel type rates which strangely have been the same for over 10 years despite the risk of losing your job having increased hugely over the same period.


    No let's tear down this PPI thing once and for all. You can't sell mortgages without some extra training and industry certification yet most mortgage advisers couldn't off the top of their head make an examination standard stab at writing down eactly how PPI works, so how on earth could the hoards of lesser mortals that sold the bulk of PPI possibly be said to have sold it correctly?

    Ah they followed the on screen questions and scripts did they ? Don't make me laugh. They did what they needed to do to keep their jobs from one day to the next and to avoid trumped up disciplinary and capability procedures designed for no other reason than to dump anyone who interrupted the company line to sell PPI, sell PPI, sell PPI, just sell it. He's selling it, she's selling it, their customers need it, you are doing our customers a disservice if you don't sell it, so sell it :mad:

    These people even got told their attitude was wrong if they weren't selling. It was the worst form of bullying in the workplace and I am glad it is being exposed in threads like this. Many of them have moved on like MSE Guy and like old soldiers who have lived through the meagre times when they did what they had to do to survive, they are now confessing their unease about how it really was in those call centres or banking halls or shop floors ...

    Now is the time to tell.
  • marshallka
    marshallka Posts: 14,585 Forumite
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    And next we will have the banks confessions that the illuminati "made" them make the profits.

    The FSA, even GISC going back all those years, knew that things were going on with the sales of PPI and just let it happen over the years. I wonder why NOW they have put a stop to it. I suppose its like everything in life, people are beginning to have voices and speaking out with help of the world wide web. It has its uses.
  • dunstonh
    dunstonh Posts: 116,664 Forumite
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    marshallka wrote: »
    And next we will have the banks confessions that the illuminati "made" them make the profits.

    The FSA, even GISC going back all those years, knew that things were going on with the sales of PPI and just let it happen over the years. I wonder why NOW they have put a stop to it. I suppose its like everything in life, people are beginning to have voices and speaking out with help of the world wide web. It has its uses.

    What I don't get is that this, as you say, has been happening for at least 20 years now. So, why hasnt the FSA (or earlier regulators) said at any point in that time that it doesnt like this and stop doing it.

    Why did it let the banks do it and then out of the blue take this action? That is not good regulating. A good regulator should spot trends and give guidance, issue warnings and then take action if ignored.

    There was talk for the last few years that the FSA would attempt to do something major before it is killed off to try and prove it was not a flop and was needed. In my eyes, it it proves is that the FSA has been ineffective both to the consumer and to the financial firms.
    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.
  • marshallka
    marshallka Posts: 14,585 Forumite
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    dunstonh wrote: »
    What I don't get is that this, as you say, has been happening for at least 20 years now. So, why hasnt the FSA (or earlier regulators) said at any point in that time that it doesnt like this and stop doing it.

    Why did it let the banks do it and then out of the blue take this action? That is not good regulating. A good regulator should spot trends and give guidance, issue warnings and then take action if ignored.

    There was talk for the last few years that the FSA would attempt to do something major before it is killed off to try and prove it was not a flop and was needed. In my eyes, it it proves is that the FSA has been ineffective both to the consumer and to the financial firms.
    Lots of things are surfacing now that have been allowed to be "got away with" before and not just PPI. Wiki leaks is a good example and lots of things far worse than a bank ripping you off for your money. I think that the FSA have only now stepped in because they know they have been rumbled, no other reason.

    Corruption has always happened but was never talked about so openly. We were sprayed with deadly chemicals from our own government and they admitted it lol....

    Perhaps its judgement day coming about. All will be revealed!!! Just where is it all going though that is the question? Its certainly inciting hate against the banks all this PPI stuff and can we ever trust them again?
  • 2sides2everystory
    2sides2everystory Posts: 1,744 Forumite
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    ... as you say, has been happening for at least 20 years now.
    And you are in a unique position to know this how exactly? We are taking confessions in this thread, remember ;)
    So, why hasnt the FSA (or earlier regulators) said at any point in that time that it doesnt like this and stop doing it.
    So why didn't sellers over those 20 years in the industry say at any time that they didn't like this and say or ask to stop doing it?
  • marshallka
    marshallka Posts: 14,585 Forumite
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    And you are in a unique position to know this how exactly? We are taking confessions in this thread, remember ;)So why didn't sellers over those 20 years in the industry say at any time that they didn't like this and say or ask to stop doing it?
    I doubt any seller of PPI (most sales people are driven by money to some extent or they are in the wrong business) would say they didn't like the money that it was bringing in. The ones confessing now are either not in "that" type of industry ATM or lost their jobs cause of reclaiming and its revenge. I wouldn't say that ALL confessions come from the heart!
  • 2sides2everystory
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    most sales people are driven by money to some extent or they are in the wrong business
    How do you qualify that?

    I like advising and selling what people need. I spent a large part of my career doing it. At no time was I ever motivated by commission. I liked my salary. The sales jobs I occupied were designed to yield long-term business relationships. Any commission was just bunce.

    So I say you are wrong. The "sales people" you refer to are the ones in financial services especially that tend to become spivs in a few short years. Their jobs are designed with low salaries and the chance of doubling it with commission in order to tempt them to rip people off. That's what they did.

    Shame on their employers for developing businesses and "jobs" to exploit exactly this, and shame on those sales people who "grew" to spout the cr*p about what a successful sales person looks like so that eventually people with consciences were not required.
  • dunstonh
    dunstonh Posts: 116,664 Forumite
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    And you are in a unique position to know this how exactly? We are taking confessions in this thread, remember

    I used to run the agency of a bank branch general insurance in the days they did that sort of thing (i.e. not own product). When they went to own product and took the agencies from the branches away and got all the staff to flog own brand products I went into full advice which was mainly investment but did include advice based protection.

    One of the very common things I had to deal with was that a staff member booked an appointment for someone to see me for protection advice but had also flogged them a PPI or accident protection policy on a non advised basis that I then had to cancel under the advice process.

    I can count the number of PPI cases I have arranged in the last decade on one hand and all 3 were done under advice process (MPPI reg premium as they should be).

    The first PPI complaint I put in about mis-sold PPI was back in 1998. It was a builder who sold single premium PPI on a secured loan to build an extension. Long long before the current complaints fashion.
    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.
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