Even though the biggest banks and financial institutions have had a very public and financial slap on the wrist for mis selling PPI, they have not learned from their mistakes and are still mis selling financial products such as insurance, loans and credit cards.
Banks and lenders are still putting undue pressure on their staff and sales people to sell financial products meaning they are pushing sales over service and many products are being mis sold yet again.
Mis sold PPI
Mis sold PPI caused a national scandal as many banks and financial lenders were caught out mis selling Payment Protection Insurance. This was because PPI earned sales people a lot of commission and many employees were put under pressure to meet PPI targets. Like any insurance policy, if information is invalid, incorrect or you are not entitled to a claim then you could be paying into a PPI policy that would never pay out even if the worst happened and one of the situations PPI should cover you for happened.
Sales people and employees selling financial products such as PPI have to follow certain protocols before they can find out if you are eligible. If they do not adhere to this line of questioning and give you the full information then they are not putting your needs before the sale.
Banks should put customer first
To avoid another mis selling scandal like recent PPI claims, banks should start to put the customer first and instead of focussing on sales work out which products the customer needs rather than which product will earn the bank the most money and the sales person the most commission.
Unlike 10 years ago banks are now under much more public scrutiny and if nothing else the PPI court ruling has shown that banks can be made accountable as customers are entitled to claim mis sold PPI.
If banks cannot change the way they do business they may find themselves in a similar ruling over mis sold loans or other types of insurance as customers have more power and are better supported by the ombudsman and FSA.
Let mis sold PPI act as a warning to banks that customer service should always come before a sale.