Public Sector Workers Sold Pointless PPIAug 28, 2017
Over a quarter of our customers were sold PPI, despite receiving sickness cover through their line of work!
The PPI scandal is crazy but true. Millions of ordinary people were ripped off by the financial institutions looking to make extra money by deceiving their trusting customers.
There were many ways in which PPI was mis-sold. Many customers were led to believe they had to take out the policy. In some cases, it was added even after the customer had stated they did not want or need the policy. There were also a number of health exclusions, which meant that the main reasons in which people were off work were never actually covered by the insurance. All of these factors add to the compelling argument that we have been trying to communicate for some time now; that PPI was never designed to benefit the customer, and was in most cases a money-making machine for financial providers.
A common problem we face when trying to highlight these issues to our customers is that many of them still trust the banks. They believe that such established organisations would never knowingly see them out of their hard earned money. As John Cleese quite rightly pointed out, the banks are trading on the fact that fifty years ago there was a code of honour amongst these businesses. Back then, customers would walk into their local bank and be greeted by the bank manager who was a well-respected member of the community. Even now, for many of our older customers their weekly trip to the bank can be one of the few social outings they experience, and talking to their bank manager can be an experience they look forward to. To then try and tell them that someone they hold in high regard has ripped them off can be a difficult task.
When applying for any form of credit, the provider will take the customer through a set of questions to establish if they are eligible for that agreement. After all, they need to know if the customer is in a position to be able to pay the money back. They are going to ask whether the customer is employed, and what kind of work they do.
What people may or may not know is that if you work in the public sector, you are entitled to full sick pay.
So, while the bank advisor questions the customer over their eligibility for the finance, they would have found out what sector they were employed in. At this point the advisor should have all the information they need to establish whether or not that customer would benefit from PPI. They would know that a customer employed within the public sector would have received sick pay, meaning they could make their payments if they were off work.
Our Basis of Claim department takes the customer through a set of questions to find out about their personal circumstances at the time of the PPI sale. They ask about any pre-existing medical conditions and whether the customer worked in the public sector during the time of sale. Shockingly, in the last twelve months, 29.47% of our customers answered ‘Yes’ to having worked in the public sector at the time of sale, however were sold PPI anyways, by their ‘friends’ at the bank!
Mike Begg is a former Clydesdale banker. He is the founder of Dundee based firm Beat the Banks who is also a member of the Alliance of Claims Companies. Begg recently commented on this issue, stating that he was ‘dealing with scores of health workers and estimated thousands of the 160,000 NHS staff in Scotland will be saddled with “pointless” PPI deals’.
Looking at this on a national scale, the latest quarterly estimates of UK public sector employment shows that 17% of the population were employed in the public sector. That amounts to 5.4 million people working in a job that would provide sickness cover. Over a quarter of our customers were sold PPI whilst working in the public sector. There is potentially millions of public sector workers who are owed compensation and we are committed to getting as much of that money back for them as possible.