We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
payment protection insurance insider secrets
sirloansalot
Posts: 2 Newbie
in Loans
I am posting this anonymously as I work within the banking industry and wish to keep my job. I do enjoy surfing this site and have found many bargains and freebies that if it were not for this site I would have missed out on so as thank you for this I am going to let you in on a few secrets and closely guarded facts.
A note to the moderator I promise I will not use any vulgar or racist language or post any links that are not entirely relevant to this post either in this opening post or in any answers to any questions I receive in fact I will not to post any links at all unless I really need to I also pledge that all the information contained within this post and any answers to questions I may post will be an accurate and true account of what really goes on behind the scenes on a daily basis at one of the largest high street banks in the UK today.
The main reason that I post this is that a lot of what is written in this loans forum seems to be a best guess as to what really goes on when you apply for a loan or an assumption as to how payment protection insurance affects your loan or the decision on whether you even get offered a loan or not.
Also the emphasis on your credit rating as to be the only factor on whether you get offered the loan or if you are declined or what APR will be applied to any loan offered as many of the readers of this forum seem to be of the impression that if they pass a credit check and have a good credit rating they have a right to be offered low interest rate loan.
And lastly a few insider secrets that you do not seem to be aware of regarding payment protection insurance and how the decision on whether you take this insurance or not can effect not just whether you are offered a loan but how this decision can in some cases damage your credit rating at best, and in other cases increase percentage rate in the APR that you will pay for the loan you are applying for and any other loan you may apply for in the future.
Firstly a little bit of recent history everyone talks about the Credit Crunch however most of what is said about it like the name it has been given is a sound bite it does not reveal what really happened or the reasons behind why it happened or even how much damage was really done to the whole of the banking industry here in the UK and the fact that it could easily happen again and is still happening now it is not over it is still causing damage to the UK banking industry we as banks are still losing money from the credit crunch it is not over and it will be a long time in the future before we can accurately count the whole cost of this event as it has not finished yet.
The cause of the credit crunch put simply greed first you lend a lot of high risk people a lot of large loans with a huge APR and no payment protection insurance so you can increase the APR and keep the monthly repayments down maximising your profit.
Next you bundle thousands of loans like this together and sell them on to other banks for short term gain and eliminating your risk.
Lastly repeat the above until thousands of these packages are in the worldwide banking system accounting for nearly half of all loans sold. Then watch when people cannot repay their loans it all come crashing down.
Now I am not blaming people who do not buy payment protection insurance for the credit crunch that would be like saying if it was a car that hit me at 70mph and not a minibus that hit me at 70mph I would be okay now and not here in the hospital.
So this part of the post I am going to call find the scapegoat as this is exactly what most banks senior staff have said and over the next few months when some of the true cost of the credit crunch is published this is what most major banks in the UK are going to name as the main cause of the credit crunch remember you heard it here first.
They have to do this otherwise they would have to tell the truth which is that most of their upper level managers made very serious miscalculations and mistakes with your money and lost it, so as you see they cannot tell the truth as this would severely damage public confidence in banks in general.
Now you can see why I am posting an article on payment protection insurance as the lack of it is about to be blamed for the biggest banking error of our time.
Now as I promised how does taking payment protection insurance affect the decision on your loan well first the blanket statement FSA approved.
The taking of payment protection insurance is optional and should not effect the decision on whether you get the loan or any of its conditions.
Now the reality and a myth busted for you at the same time.
1. It is entirely up to a bank if they wish to offer you a loan or not.
2. You have no legal right to a loan from any bank regardless of your credit rating or any credit check you may have passed.
3. The bank is under no legal obligation to give you any reason as to why they do not wish to give you a loan.
The above three are facts about banking in the UK so if you do not take payment protection insurance and the bank considers that you are a risk for example you are a builder/scaffold erector and you have no insurance it does not need to give you any reason as to why it has decided not to offer you a loan.
So as you see in practice this statement:
The taking of payment protection insurance is optional and should not effect the decision on whether you get the loan or any of its conditions.
Means nothing the bank will do as it sees fit to protect its funds and can do so with the full protection of UK law.
Next do you save money by not taking payment protection insurance look at this example below.
Mr A takes out a loan for £5000 over 5 years with payment protection insurance and gets an APR of 6%. Mr B takes out a loan of £5000 pounds over 5 years without payment protection insurance and gets an APR of 6% saving himself £30 a month.
Both Mr A and Mr B have the same job and the same credit rating.
5 years pass without incident and both loans are now repaid in full. So Mr A applies for a new £5000 loan over 5 years with payment protection insurance and gets a discounted APR of 4.5% by way of a loyalty bonus offer the bank sent to him in the post when his first loan ended. Mr B also applies for a new £5000 loan over 5 years again without payment protection insurance however his APR is not discounted in fact due his risk factor it is now 15.9% and no discount is available as he was not sent one in the post by the bank.
Now you see how Mr B did save £30 a month on his first loan however on his second loan his repayments will be more than Mr A’s payments and on every loan he takes out until he takes a loan out with payment protection insurance and reduces his risk factor.
I can already hear you screaming at the screen this is wrong it can’t be true.
This is a fact Mr B is a greater risk than Mr A so the bank is encouraged by the FSA under the guise of responsible lending to do exactly what I have shown you in the example above to discourage someone who has a greater risk factor from borrowing money. This is in line with FSA guidelines however it is up to the bank how they calculate risk factors so this practice is standard at most major banks in the UK with full FSA backing.
Now to count the full cost of Mr B not taking out payment protection insurance you have to remember that Mr B’s risk factor will also be taken into account if he decides to re-mortgage his home so this could really cost him a lot of money.
And it is not just the bank that you take your loan out with that know that you do not take payment protection insurance when you take out a loan so Mr B’s APR which is dependant on his personal circumstances will now be higher at all major banks in the UK.
How do other banks know this, it is easy as when Mr B was credit scored he was applying for a rounded figure of £5000 exactly therefore this would mean that he had not taken any payment protection insurance and as every credit score is recorded it is easy to track whether you buy payment protection insurance when you take out a loan or not, or if you have payment protection insurance removed as you are re-credit scored if you have it removed, so now Mr B is always going to be in a higher risk category than Mr A no matter what bank he goes to in the UK.
As you can also see from the example that your credit rating only indicates whether you can repay a loan or not and does not affect what APR you will be offered that is entirely up to the bank and what risk factor they have put you in. While everyone is looking at payment protection insurance and saying how it is expensive and unnecessary they are not looking in the right place, as all of the attention is focused on payment protection insurance no one is watching the average APR on a loan increasing, and how people not taking the payment protection insurance are now getting on average offered loans with an APR 12% higher than those people taking the payment protection insurance this is set to get worse as more people opt out of the payment protection insurance.
Next a closely guarded secret as to why banks act this way most banks offer payment protection insurance through a sister company so you pay the bank for the loan and the sister company for payment protection insurance, thus evading some tax along the way banks used to just add the payment protection insurance by having a higher APR and insuring the loan themselves now by splitting the profits they avoid some tax and make you think you are getting a good deal with a low APR I hope you now understand why banks will go to such lengths to deceive you and you don’t feel as though you are on your own as they are dodging some tax as well.
Up until now I have only covered the banks official line as regards to payment protection insurance and credit ratings things that they do everyday that are perfectly legal.
I will now cover the actions and reasons for these actions of their employees.
First of all think of the people setting up these loans either in your branch or in a call centre they have targets to meet and these targets are a on percentage of people passing the credit check and taking the payment protection insurance if you fail the credit check you do not count in this percentage target.
So as an example Mr A phones up for a loan with payment protection insurance he is self employed however according to the records on file he is marked down as employed the advisor ignores this as if she changes the record now Mr A will fail the credit score and he has no markers on his account so she will inform her manager later to get this corrected and more importantly to her he has taken the payment protection insurance so counts towards her target. Ten minuets later Mr B phones up for a loan and gets the same advisor Mr B does not want payment protection insurance and will not be swayed as this will save him £30 per month. The advisor notices that he to is self employed but is on record as being employed she questions him about this and decides that she should change the records before she credit scores Mr B. Mr B has no markers on his account but she still changes the file so when he is credit scored it is declined. As he was declined the fact that he did not want the payment protection insurance does not matter she has only had one accept that was Mr A and he took the payment protection insurance so she has a target percentage of 100%.
The advisor here has done nothing wrong this is her judgement call and it is entirely up to her which route she takes both routes to amend or not to amend the records before credit scoring are both technically right.
Mr B will now find it almost impossible to obtain credit anywhere for 6 months and as the records are now correct so no manager will need to be informed and so no amendment to Mr B’s credit file will take place.
Can you see how a lot of people who think they have a good credit rating can still get declined. I have used a call centre as an example but this type of behaviour is more common at your local branch because their target percentage is a lot higher than the call centres target percentage and they can get away with a lot more as phone calls in a call centre are recorded and the account records in a call centre are more closely monitored and the branch manager at your local branch is more likely to turn a blind eye to his staff doing things a lot worse than this example to get a credit score declined and to get target percentages up.
I know of one case where an advisor in the branch would leave the customer in the interview room if they did not take the payment protection insurance, he would then run 2 or 3 credit scores using the customers details from another console in the branch until they came back as declined and the customers credit file was totally ruined for at least 6 months, then he would return to the customer and run another credit score in front of the customer which would then automatically decline, he did this with the full backing of his branch manager when they were caught they were retrained not dismissed the advisor is now a branch manager and the branch manager is an area branch manager they were however made to repay their performance related pay bonuses back for 6 months, but who really knows how long they had been doing this for or if they are still up to their old tricks and teaching them to new staff now.
In the defence of the call centre and branch staff they can be dismissed for not meeting their target percentages would you risk your job for a stranger to get a loan I wouldn’t, and I didn't when I was an advisor in a branch I knew every trick in the book to get you decined if you did not take the payment protection insurance and believe me they still work.
Remember if you get a adviser having a bad week then if you do not take the payment protection insurance then you probably will not get the loan approved but you will end up getting your credit rating trashed.
In summing up if I needed a loan especially if I needed it quickly with no hassle I would take the payment protection insurance as this means I will probably get the loan and the next loan or re- mortgage I apply for will be at a lower APR thus saving me a lot of money in the long run. And I know that no member of staff either at a branch or at a call centre will destroy my credit rating just to meet their targets.
I would never cancel the payment protection insurance as this also creates a file in your credit records the score is pre approved and flagged as a payment protection insurance removal score which means the next loan or re-mortgage I apply for would also be in a high risk factor category at any major bank in the UK.
I do not like or agree with this but this is just the way the system works so if I can't change something I just carry on and deal with it the best way I can.
I hope this has helped dispel some of your myths and also given you an insight into how loans and payment protection insurance works, and yes the banks have got this and us well sewn up.
A note to the moderator I promise I will not use any vulgar or racist language or post any links that are not entirely relevant to this post either in this opening post or in any answers to any questions I receive in fact I will not to post any links at all unless I really need to I also pledge that all the information contained within this post and any answers to questions I may post will be an accurate and true account of what really goes on behind the scenes on a daily basis at one of the largest high street banks in the UK today.
The main reason that I post this is that a lot of what is written in this loans forum seems to be a best guess as to what really goes on when you apply for a loan or an assumption as to how payment protection insurance affects your loan or the decision on whether you even get offered a loan or not.
Also the emphasis on your credit rating as to be the only factor on whether you get offered the loan or if you are declined or what APR will be applied to any loan offered as many of the readers of this forum seem to be of the impression that if they pass a credit check and have a good credit rating they have a right to be offered low interest rate loan.
And lastly a few insider secrets that you do not seem to be aware of regarding payment protection insurance and how the decision on whether you take this insurance or not can effect not just whether you are offered a loan but how this decision can in some cases damage your credit rating at best, and in other cases increase percentage rate in the APR that you will pay for the loan you are applying for and any other loan you may apply for in the future.
Firstly a little bit of recent history everyone talks about the Credit Crunch however most of what is said about it like the name it has been given is a sound bite it does not reveal what really happened or the reasons behind why it happened or even how much damage was really done to the whole of the banking industry here in the UK and the fact that it could easily happen again and is still happening now it is not over it is still causing damage to the UK banking industry we as banks are still losing money from the credit crunch it is not over and it will be a long time in the future before we can accurately count the whole cost of this event as it has not finished yet.
The cause of the credit crunch put simply greed first you lend a lot of high risk people a lot of large loans with a huge APR and no payment protection insurance so you can increase the APR and keep the monthly repayments down maximising your profit.
Next you bundle thousands of loans like this together and sell them on to other banks for short term gain and eliminating your risk.
Lastly repeat the above until thousands of these packages are in the worldwide banking system accounting for nearly half of all loans sold. Then watch when people cannot repay their loans it all come crashing down.
Now I am not blaming people who do not buy payment protection insurance for the credit crunch that would be like saying if it was a car that hit me at 70mph and not a minibus that hit me at 70mph I would be okay now and not here in the hospital.
So this part of the post I am going to call find the scapegoat as this is exactly what most banks senior staff have said and over the next few months when some of the true cost of the credit crunch is published this is what most major banks in the UK are going to name as the main cause of the credit crunch remember you heard it here first.
They have to do this otherwise they would have to tell the truth which is that most of their upper level managers made very serious miscalculations and mistakes with your money and lost it, so as you see they cannot tell the truth as this would severely damage public confidence in banks in general.
Now you can see why I am posting an article on payment protection insurance as the lack of it is about to be blamed for the biggest banking error of our time.
Now as I promised how does taking payment protection insurance affect the decision on your loan well first the blanket statement FSA approved.
The taking of payment protection insurance is optional and should not effect the decision on whether you get the loan or any of its conditions.
Now the reality and a myth busted for you at the same time.
1. It is entirely up to a bank if they wish to offer you a loan or not.
2. You have no legal right to a loan from any bank regardless of your credit rating or any credit check you may have passed.
3. The bank is under no legal obligation to give you any reason as to why they do not wish to give you a loan.
The above three are facts about banking in the UK so if you do not take payment protection insurance and the bank considers that you are a risk for example you are a builder/scaffold erector and you have no insurance it does not need to give you any reason as to why it has decided not to offer you a loan.
So as you see in practice this statement:
The taking of payment protection insurance is optional and should not effect the decision on whether you get the loan or any of its conditions.
Means nothing the bank will do as it sees fit to protect its funds and can do so with the full protection of UK law.
Next do you save money by not taking payment protection insurance look at this example below.
Mr A takes out a loan for £5000 over 5 years with payment protection insurance and gets an APR of 6%. Mr B takes out a loan of £5000 pounds over 5 years without payment protection insurance and gets an APR of 6% saving himself £30 a month.
Both Mr A and Mr B have the same job and the same credit rating.
5 years pass without incident and both loans are now repaid in full. So Mr A applies for a new £5000 loan over 5 years with payment protection insurance and gets a discounted APR of 4.5% by way of a loyalty bonus offer the bank sent to him in the post when his first loan ended. Mr B also applies for a new £5000 loan over 5 years again without payment protection insurance however his APR is not discounted in fact due his risk factor it is now 15.9% and no discount is available as he was not sent one in the post by the bank.
Now you see how Mr B did save £30 a month on his first loan however on his second loan his repayments will be more than Mr A’s payments and on every loan he takes out until he takes a loan out with payment protection insurance and reduces his risk factor.
I can already hear you screaming at the screen this is wrong it can’t be true.
This is a fact Mr B is a greater risk than Mr A so the bank is encouraged by the FSA under the guise of responsible lending to do exactly what I have shown you in the example above to discourage someone who has a greater risk factor from borrowing money. This is in line with FSA guidelines however it is up to the bank how they calculate risk factors so this practice is standard at most major banks in the UK with full FSA backing.
Now to count the full cost of Mr B not taking out payment protection insurance you have to remember that Mr B’s risk factor will also be taken into account if he decides to re-mortgage his home so this could really cost him a lot of money.
And it is not just the bank that you take your loan out with that know that you do not take payment protection insurance when you take out a loan so Mr B’s APR which is dependant on his personal circumstances will now be higher at all major banks in the UK.
How do other banks know this, it is easy as when Mr B was credit scored he was applying for a rounded figure of £5000 exactly therefore this would mean that he had not taken any payment protection insurance and as every credit score is recorded it is easy to track whether you buy payment protection insurance when you take out a loan or not, or if you have payment protection insurance removed as you are re-credit scored if you have it removed, so now Mr B is always going to be in a higher risk category than Mr A no matter what bank he goes to in the UK.
As you can also see from the example that your credit rating only indicates whether you can repay a loan or not and does not affect what APR you will be offered that is entirely up to the bank and what risk factor they have put you in. While everyone is looking at payment protection insurance and saying how it is expensive and unnecessary they are not looking in the right place, as all of the attention is focused on payment protection insurance no one is watching the average APR on a loan increasing, and how people not taking the payment protection insurance are now getting on average offered loans with an APR 12% higher than those people taking the payment protection insurance this is set to get worse as more people opt out of the payment protection insurance.
Next a closely guarded secret as to why banks act this way most banks offer payment protection insurance through a sister company so you pay the bank for the loan and the sister company for payment protection insurance, thus evading some tax along the way banks used to just add the payment protection insurance by having a higher APR and insuring the loan themselves now by splitting the profits they avoid some tax and make you think you are getting a good deal with a low APR I hope you now understand why banks will go to such lengths to deceive you and you don’t feel as though you are on your own as they are dodging some tax as well.
Up until now I have only covered the banks official line as regards to payment protection insurance and credit ratings things that they do everyday that are perfectly legal.
I will now cover the actions and reasons for these actions of their employees.
First of all think of the people setting up these loans either in your branch or in a call centre they have targets to meet and these targets are a on percentage of people passing the credit check and taking the payment protection insurance if you fail the credit check you do not count in this percentage target.
So as an example Mr A phones up for a loan with payment protection insurance he is self employed however according to the records on file he is marked down as employed the advisor ignores this as if she changes the record now Mr A will fail the credit score and he has no markers on his account so she will inform her manager later to get this corrected and more importantly to her he has taken the payment protection insurance so counts towards her target. Ten minuets later Mr B phones up for a loan and gets the same advisor Mr B does not want payment protection insurance and will not be swayed as this will save him £30 per month. The advisor notices that he to is self employed but is on record as being employed she questions him about this and decides that she should change the records before she credit scores Mr B. Mr B has no markers on his account but she still changes the file so when he is credit scored it is declined. As he was declined the fact that he did not want the payment protection insurance does not matter she has only had one accept that was Mr A and he took the payment protection insurance so she has a target percentage of 100%.
The advisor here has done nothing wrong this is her judgement call and it is entirely up to her which route she takes both routes to amend or not to amend the records before credit scoring are both technically right.
Mr B will now find it almost impossible to obtain credit anywhere for 6 months and as the records are now correct so no manager will need to be informed and so no amendment to Mr B’s credit file will take place.
Can you see how a lot of people who think they have a good credit rating can still get declined. I have used a call centre as an example but this type of behaviour is more common at your local branch because their target percentage is a lot higher than the call centres target percentage and they can get away with a lot more as phone calls in a call centre are recorded and the account records in a call centre are more closely monitored and the branch manager at your local branch is more likely to turn a blind eye to his staff doing things a lot worse than this example to get a credit score declined and to get target percentages up.
I know of one case where an advisor in the branch would leave the customer in the interview room if they did not take the payment protection insurance, he would then run 2 or 3 credit scores using the customers details from another console in the branch until they came back as declined and the customers credit file was totally ruined for at least 6 months, then he would return to the customer and run another credit score in front of the customer which would then automatically decline, he did this with the full backing of his branch manager when they were caught they were retrained not dismissed the advisor is now a branch manager and the branch manager is an area branch manager they were however made to repay their performance related pay bonuses back for 6 months, but who really knows how long they had been doing this for or if they are still up to their old tricks and teaching them to new staff now.
In the defence of the call centre and branch staff they can be dismissed for not meeting their target percentages would you risk your job for a stranger to get a loan I wouldn’t, and I didn't when I was an advisor in a branch I knew every trick in the book to get you decined if you did not take the payment protection insurance and believe me they still work.
Remember if you get a adviser having a bad week then if you do not take the payment protection insurance then you probably will not get the loan approved but you will end up getting your credit rating trashed.
In summing up if I needed a loan especially if I needed it quickly with no hassle I would take the payment protection insurance as this means I will probably get the loan and the next loan or re- mortgage I apply for will be at a lower APR thus saving me a lot of money in the long run. And I know that no member of staff either at a branch or at a call centre will destroy my credit rating just to meet their targets.
I would never cancel the payment protection insurance as this also creates a file in your credit records the score is pre approved and flagged as a payment protection insurance removal score which means the next loan or re-mortgage I apply for would also be in a high risk factor category at any major bank in the UK.
I do not like or agree with this but this is just the way the system works so if I can't change something I just carry on and deal with it the best way I can.
I hope this has helped dispel some of your myths and also given you an insight into how loans and payment protection insurance works, and yes the banks have got this and us well sewn up.
0
Comments
-
Wow what a post!!
Unfortunately it is very, very difficult to read because of a lack of punctuation, and I have to say as someone who works in the industry most of it is jibberish - the bits I could follow.
Firstly, your description of the credit crunch is nonsence.
Secondly, the vast majority of lending decisions are made by score cards not humans, who simply communicate the decision! Sure there are many over zealous sales staff in branches and call centres but they don't approve loans, the flog PPI.
Your bank doesn't have a Training & Competence scheme? You don't have Regulatory Risk or Compliance or Legal teams breathing down necks.
I am sure there are many underhand tactics to get people to buy but not as you (try) to describe it.
If it is like you say, you should report to the FSA's whistleblowers number or name them!0 -
How does cancelling PPP get put on a credit file? I can tell you for a fact that it doesn't with the high street bank I work for.
Also I know of no cases where taking loan insurance will mean better rates on future loans.0 -
Ouch, my poor eyes!
Call me Miss Picky, but a bit of white space between paragraphs would make that a heck of a lot easier to read
LBM November 2005: approx £32K :eek:Current debt: approx £12K :TGetting there one day at a time
0 -
dwsjarcmcd wrote: »Wow what a post!!
Unfortunately it is very, very difficult to read because of a lack of punctuation, and I have to say as someone who works in the industry most of it is jibberish - the bits I could follow.
Firstly, your description of the credit crunch is nonsence.
Secondly, the vast majority of lending decisions are made by score cards not humans, who simply communicate the decision! Sure there are many over zealous sales staff in branches and call centres but they don't approve loans, the flog PPI.
Your bank doesn't have a Training & Competence scheme? You don't have Regulatory Risk or Compliance or Legal teams breathing down necks.
I am sure there are many underhand tactics to get people to buy but not as you (try) to describe it.
If it is like you say, you should report to the FSA's whistleblowers number or name them!
Agreed. I sell loans and of course I'm targeted on selling the loan insurance, which makes a massive difference to our 'points' received for the sale, but to say staff would turn people away for not taking it is rather far fetched I fear.0 -
So this sort of thing really does go on?
The whole point of my PPI reclaim is that it was front-loaded, and if I didn't take it I couldn't have the loan. Was that another adviser trying to meet their sales target?
(Forgive my ignorance, I don't work in the industry)LBM November 2005: approx £32K :eek:Current debt: approx £12K :TGetting there one day at a time0 -
is it me, or did the credit crunch happen because sub prime loans in the us where sold with discounted APR's, which people could just afford. Loan co's them banged up the rates into double digits, to counter the risk of lending to the sub prime market, which then made people default, cos they had no chance of making the payments. Houses started getting repossed, and if it had been one company riding the debt, they would have gone under. However, the banks who did the lending, packaged the sub prime debt in with higher quality debts and sold them on. This was done on a massive scale, so when the repossesions roled in, the losses went global.
Didn't know PPI covers a general inability to pay. If so, lend me £10mill, and I'll let the PPI pay it off.
Having said that, can understand what you are saying about the in bank behaviour, but this happens in every large scale selling operation, so not surprised.0 -
Absolut_Wench wrote: »So does this sort of thing go on?
Forgive my ignorance, I don't work in the industry.
Bad practice will happen but there are so many ridiculous statements that most of what (I think) was said is just not true. Take the story about Mr A & Mr B taking loans, one with and one without PPI and at the end one gets a repeat offer of 4.5% and the other at 15.9% because one took PPI and the other didn't. Complete claptrap, these decisions are made by computers, based on payment history. The selections are made by the database segmentation tools and letters generated without people getting involved.
As has been said, targeting for this type of sales does take place - but is declining because of the FSA's interest - and consequently overt sales pressure will sometimes be applied, but not in the manner described and only by the minority.0 -
I'm too tired to even get started on this one but I don't agree with your scenarios and the adviser deliberately ruining the custs credit score by multiple applications because they declined PPI-ridiculous!! It's gross breech of FSA regulations and I can assure you, in any of the financial institutions I have worked in, if that had been done, you'd of been out on your ar*e-no holiday pay, no bonus owed, no bloody reference!! Absolutly nothing!!!!! Apart from the disgrace!!
I feel sorry for every person who reads this because some banks work bloody hard to build rapport and relationships with their customers and this post makes advisers out to be malicious liars and selling sharks.
I go to bed at night, proud that I have helped someone out of a stressful and miserable situation and to see a way forward out of debt. I've been there and I feel for every single person who calls out for help. I am damn proud that I have done everything I can to try and help-whether I get a sale or not!!
This post has just disappointed me. And i'm very difficult to shock-but this one has left me speechless because the majority of it is just not true at all! Well, the scenarios at least, with regards to things you have 'seen' or 'heard', I can't comment on!Loan-£3600 only 24 months of payments to go!!!
All debt consolodated and cards destroyed!!
As D'Ream would sing 'Things.....can only get better'!!!0 -
is it me, or did the credit crunch happen because sub prime loans in the us where sold with discounted APR's, which people could just afford. Loan co's them banged up the rates into double digits, to counter the risk of lending to the sub prime market, which then made people default, cos they had no chance of making the payments. Houses started getting repossed, and if it had been one company riding the debt, they would have gone under. However, the banks who did the lending, packaged the sub prime debt in with higher quality debts and sold them on. This was done on a massive scale, so when the repossesions roled in, the losses went global.
Didn't know PPI covers a general inability to pay. If so, lend me £10mill, and I'll let the PPI pay it off.
Having said that, can understand what you are saying about the in bank behaviour, but this happens in every large scale selling operation, so not surprised.
I am not surprised either to be honestI always wanted to be a procrastinator, never got round to it...0 -
Yes this sort of thing goes on and it will be defended by anyone in the industry and they probably only made a couple of pounds out of you.Absolut_Wench wrote: »So this sort of thing really does go on?
The whole point of my PPI reclaim is that it was front-loaded, and if I didn't take it I couldn't have the loan. Was that another adviser trying to meet their sales target?
(Forgive my ignorance, I don't work in the industry)0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards