Recently, the commercial banks have been slammed for making pointless sales of PPI policies to the workers of National Health Service (NHS). According to the reports, the workers were mis-sold the policy saying that there will be no redundancies in the future that would be mandatory. There are thousands of such health board employees which are affected by this massive mis-selling of the policy. A former banker at Clydesdale, Mike Begg, claimed that he had been dealing with numerous complaints from the affected customers working at NHS, regarding making claims for their respective PPI refunds. Majority of these workers have been adversely affected by these policies in spite of having a firm job security. It is clear that the workers can’t be sold a redundancy cover if the lender can’t be made redundant in the first place. Mike adds in his statement that if he were indulged into selling such policies to the NHS workers while being into the lending business, he would have been given a “rocket” by his bosses.
It clearly makes no sense in selling the policy with high-end cover to NHS workers, who have 12 months of sick pay and no guarantee of mandatory redundancy. Mike also slammed the banking giant Lloyds for taking a tough stance with PPI compensation, where they were accused of pestering customers through constant phone calls as a tactic of avoiding their payouts. The clients complained saying that it was a really aggressive tactic followed by the bank and that that they felt pressurised and harassed by the calls. It was then revealed that the bank already had all the information they required about the customers. This was simply a gimmick aimed at reducing the amount of money they are supposed to pay as PPI refund to their mis-sold customers. Mike ended his statement by saying that such claims would have settled at least four years ago if they were treated in a normal way. The claims are now getting bigger, and the bank tactics dirtier.
PPI was originally meant to be sold to people for helping them in taking care of their income when they are not able to work due to unforeseen circumstances. As the banks started misusing this service and ended up mis-selling the same, thousands of customers were unethically robbed off their money over the period of years. The scam hit a new low when it was revealed the high-end commercial banks didn’t even spare the NHS workers and secretly sold them PPI. Majority of them were sold the policy along with a loan or credit, without them knowing about this. After this practise was exposed, it was tagged as ‘pointless’ due to its complete irrelevance with the need of the workers. This makes it clear that the policy was sold precisely for the purpose of earning more commission from innocent NHS workers, who had no idea that they were being manipulated by the banks they trusted the most when it came to safeguarding their financial interests. This has only ruined the image of many high-street banks in the market, which was already shaky after the unveiling of the much infamous PPI scandal!