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Reclaim PPI On Mortgages

Reclaim PPI On Mortgages

There was a significant move away from renting a home to buying a property instead in the 1980s. We were encouraged to think of ourselves as home owners, as having our own little corner of the world to call ours. Mortgages were relatively affordable, especially when compared to paying rent on a house or flat that you would never get to own outright.

The banks and building societies were happy to encourage the lending, but for them the margins on a mortgage weren’t overly high. There was profit to be made, of course, but it was more of a steady trickle than a powerful waterfall. They needed something else to augment their income, and that something else turned out to be Payment Protection Insurance, otherwise known as Accident, Sickness and Unemployment Cover.

Sales teams in our financial institutions often used extremely aggressive tactics to encourage customers to sign up to PPI, and most people agreed to do so, wrongly thinking it was the right thing to do. Policies offered by just about all of our banks and building societies were usually far more expensive than those that could have been purchased elsewhere, and in many cases the cover itself was of little or no use anyway.

Even the most trusted sales teams were hardly likely to tell you that PPI was cheaper elsewhere, and we had always trusted our high street banks in the past so why shouldn’t we trust them to do the right thing? The truth is that as the lending boom continued, the drive for profits overtook any feelings of customer loyalty that we’d enjoyed in the past. From then on, it was pretty much all about making money.

One of the reasons the banks and building societies loved PPI so much was the fact that it was so easy to sell. It played on the customers’ basic need to feel protected when taking out a major financial commitment, so there wasn’t usually much in the way of persuasion needed. And it was sold as a one size fits all product, so that meant expensive training courses for sales teams were not necessary.

Loyal customers, not so loyal banks

It should also be borne in mind that back in the 1980s and 1990s there were no comparison websites to encourage you to seek better deals elsewhere. The chances are if you banked with Barclays then you’d seek a mortgage from them as well. The same process often applied to taking out a credit card, too, and even further borrowing such as a bank loan. If PPI was included in each of those products, the profits were substantial.

Looking back now with hindsight, we as a society placed a great deal of trust in our financial institutions, and once the lending boom took hold that trust very quickly dissipated. In a bid to gain an ever larger slice of the pie, big names such as Lloyds, Halifax, Abbey National, NatWest and many, many more were prepared to push a sometimes useless product to people who didn’t really need it and sometimes didn’t even want it.

By the time the credit crunch arrived, millions of people in the UK were left with debts that would take years to pay off. Some even found that when hardships kicked in they simply didn’t have the cover and protection that they thought they’d signed up to. It seems crazy to look back now and realise that the cover was often the same for a fitness fanatic in her early twenties as it was for an unhealthy workaholic in his sixties.

Here at Beat the Banks, we have been handling PPI compensation claims for many years now, and we’ve come across so many tales of aggressive selling and inappropriate policies. The banks, building societies and other credit providers have set aside billions of pounds to pay for such claims, but with the PPI deadline day fast approaching there isn’t much time left to start the ball rolling.

If you suspect you had PPI on a mortgage in the past, why not call our team of specialists to see if anything can be done about it? We’re available for a free, no obligation chat on 0800 193 1234, and we hope to hear from you soon.

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The PPI deadline has now passed.

We can no longer assist you in submitting a PPI claim.