PPI for Loan. Do staff get commission?????

kaykay_2

Its a query really - grateful to anyone who could shed light on this. I have recently applied a personal loan through a high street bank and got a call to say prior to acceptance i needed to answer a few more questions. The bank worker went on to say that i should strongly consider PPI and asked me hundreds( probably slightly exagerated) of questions about what i would do if me or my husband became ill, died. I knew where it was heading and said i didnt want PPI from them, she wouldnt tell me whether the loan had been accepted until she had completed her sales jargon and almost frightened me into accepting it. (She made it sound like I would not get the loan unless i agreed)!!! Anyway i stuck to my guns and said that i had made my mind up and that i would look for independent PPi if i felt i needed it. Eventually she told me what my repayments would be without their PPI and put me on hold and then said it had been agreed without. Is she on commision for getting customers to agree to it??? I felt like i wanted to slash my writst by the end!!!
Please advise

scotsgirl_3

Almost certainly - most finance and bank sales people will get more commission for selling extra products like ppi

brownie2

Well done for holding out . Tactics like that do often work unfortuantley and it's the sales'person' laughing all the way to the bank

kaykay_2

It makes me really cross to read this because in my naivety i thought it was just serious advice out of the goodness of their hearts- what the sales woman did to me today was tantamount to bullying!!! Can i complain??

brownie2

You may be able to have a word with the manager about the aggressive nature but as its normal course of practice with the salespeople you will probably get a few kind words said to you at the time and then nothing more. Just be pleased you didnt fall for it.

LisaT186

To a certain degree they do need to make sure that you are aware of what would happen if you were off sick etc. If you ever needed the insurance and hadn't been clearly explained the benefits or offered the protection then in theory you might have a case for suing them!

On the other hand the aggressiveness of it will be due to the sales target they have to achieve. When I worked in a bank a loan with PPI was worth at least 12 times more 'points' towards my target than one without. Actually less work to do the hard sell than sell 12 more loans!

kaykay_2

Thanks for the advice everyone - i'll just put it down to experience.
Nicola(kaykay)

regularsaver1

Some banks have to take notes to cover themsevles now, so that if a customer comes back and says that ppi wasn't offered they have notes about what existing cover that you have

Because they are regulated by the FSA, they have to mention ppi otherwise they could be putting someone at risk

The level of advise differs though - some offer an advised level of serice, and some a non-advised level

PBA

Totally agree with regularsaver. The banks need to protect themselves from a potential complaint, in case you found yourself needing to claim on CP but hadn't had the benefits explained thoroughly enough. And yes, the advisor will get far more credit for selling a loan with CP rather than just the loan.