Why Payment Protection Insurance Hurts The Banking Industry

As a society, we have come to the understanding of a few things in the financial world that are just true. We believe that banks are there to provide safe harbor for our money, and to even help us grow it. We believe that insurance provides great peace of mind that we can turn to when times get rough. However, what happens when we feel that the banking industry has lied to us through some of the products and services that were sold? It’s very tempting to say that you’re going to be able to automatically trust in the bank again, but we know from experience that people have a hard time trusting a company when their initial confidences were broken.

That’s the problem facing the banking industry now that the truth about payment protection insurance is back. If you are not careful, you could find yourself facing a lot of extra money that went out the door. Analysts have found that up to half of a loan’s total value could be trapped in these PPI premiums.

This is a type of insurance that actually has a pretty high level of rejection when it comes to claims. You might have bought into the PPI policy, or it might have been forced upon you as a condition of getting the loan. This is something that is very wrong, and the banking industry has to wear the shame of knowing that their representatives sold thousands upon thousands of bad policies to people that trusted them.

It’s now time to fight back, even though you might still be in shock. What could you do with those extra payments? Quite a lot, and that’s the problem — you are owed compensation. Not just the raw figure — but interest that should be paid on the money. You essentially had a forced savings account, and that’s not a good thing at all. So you will be entitled to getting interest on the money that was essentially stolen from you.

If you know that you have been mis-sold PPI, now is definitely the time to find legal representation.

It hurts the banking industry because once trust is lost; it’s hard to get back. The industry as a whole is going to have to make sure that they focus on the bigger picture here, and that’s going to be regaining the trust of their customer — not an easy road at all!