Back The Petition To Ban Ppi Sales **************

Tootsie_Roll

Dylanwing wrote: »

Can I just clarify, are you using this to justify the rip-off? BTW, I agree with the rest of your post.

Not at all - just making the point that we will end up paying one way or another. The lenders will protect their income and if they lose the income from ppi they will make it up somehow - probably by charging more interest.

MarkyMarkD

I can't agree with the idea behind this petition.

As ejones says, if the loan sellers were banned from selling PPI, most people buying loans wouldn't buy PPI.

And PPI is a very useful form of insurance for many of those who buy it.

The fact that it's an expensive form of insurance - if bought from some lenders - is rather missing the point. The realistic choice is between people being offered - and buying - expensive PPI which they need, or not buying it and being uninsured.

People who buy lenders' PPI don't know they can buy it cheaper elsewhere. It's no different to British Gas gas customers who are too daft to realise they can buy their gas elsewhere. But I don't see petitions banning British Gas from existing, or requiring them to write to all their customers saying "Why not consider an alternative supplier because we are expensive".

As regards the mis-selling point (meaning people buying PPI who are not eligible for cover, normally because they are self-employed or on short-term contracts) this is down to the borrowers involved not bothering to read the material that's sent to them with their loan application forms and therefore buying insurance they aren't eligible to claim on.

I don't have sympathy for people who enter into contracts for thousands of pounds (indeed, tens of thousands of pounds in many cases) and can't be bothered to read the elibility conditions which will normally say something fairly obvious. Example from Nationwide BS:

Eligibility
To be eligible for mortgage payment protection insurance you must:

• already have or be taking out a Nationwide mortgage or further advance (not currently in arrears)
• be over 18 and under 65 (cover ceases once you reach 65)
• live permanently in the United Kingdom, (England, Scotland, Wales, Northern Ireland, Channel Islands and Isle of Man)
• be in work for at least 16 hours a week either as a permanent member of your employer's staff on an open-ended contract, or as a member of your employer's staff on a fixed term contract or as a self-employed person
• have been continuously in work for the last 6 months unless you are taking a new Nationwide mortgage or a further advance, or have done so in the last 3 months

Now honestly, tell me that you think it's reasonable for someone buying PPI to NOT read those perfectly clear conditions, and then to moan that the PPI was mis-sold because they don't work 16 hours a week (for example)?

tomstickland

I don't agree with the petition either.

jonesMUFCforever

AGB863 wrote: »

People are not always made aware that they can purchase an alternative cover, probably at a significant cost saving, other than what is being offered to them by the bank at the time of signing ther agreement.

The bank is there to make money.
It is not up to them to steer people away from their own business.
Interesting in supermarkets you always get little signs showing things cheaper in their supermarket against others. Have you ever seen one showing their products to be more expensive?
Shouldn't people be made aware of this as well??