Payment protection insurance (also known simply as PPI) has been infamously mis-sold ever since it was first introduced to the public. Even though in some circumstances it can be beneficial, it was mostly mis-sold to members of the public who simply were not aware that the insurance was being sold alongside their mortgage, credit card, or personal loan.
This brings up the question, “can the banks be trusted after the recent PPI scandal?” – and it is definitely a valid question which needs to be answered. This is simply because we deal with banks almost every day and they have become a vital part of our day-to-day life. If we ever want to pay for something chances are we will use our credit or debit card. It’s very rare that someone will pay only in cash and won’t use a credit or debit card for the majority of their transactions.
An Overview of PPI
PPI is a type of insurance that was introduced to the public to protect people those who were at risk of losing their jobs, or might have been unable to pay back the money borrowed for some other reason. Many people were mis-sold this insurance and it was cunningly included into a lot of mortgages, credit card, and personal loan terms.
So this is the reason why so many people are now making claims to receive compensation. Many people lost a lot of money during the time that PPI was mis-sold and some are even claiming back thousands!
Is It Wise to Trust the Banks Again?
Chances are that you will have your own arguments of whether the banks should be trusted or not – however, it’s safe to say that the banks are a necessity in our day to day lives. The majority of us simply can’t go through the day without utilizing our credit or debit card. In addition to this, many people have mortgages and loans with banks and so the question of whether they can be trusted or not isn’t really a difficult question to answer – simply because the majority of us have no choice but to trust them.
With this in mind, it’s important that you take some vital steps to protect yourself in the instance that another scandal happens. Here are some steps that you can implement today:
1. Keep only a limited amount of money in the bank. This is highly recommended as it will decrease your liability i.e. if something goes wrong at the bank (they decide to close/freeze your account for instance) then you can feel safe knowing that you have a decent cash supply stored away somewhere.
2. Always read through terms and conditions carefully when taking out any large product from the bank, some examples include: mortgages, credit cards with high overdraft limits, personal loans, commercial loans. If in doubt, it is always recommended employing the help of a professional such as a solicitor who will be able to provide you with advice and guidance on the topic.
3. Choose your bank carefully. Many of us simply have to use banks, they’re very effective when making large payments and doing other types of business. If this is the case for you, make sure that you choose a trustworthy and reliable bank – ask your friends, family members, and even colleagues or business partners for reviews on the banks that they use. If you need further advice, you can always go online and check out some forums for additional information.
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