Mortgage Payment Protection Insurance

'we trusted the banks too much'

Before mortgage payment protection insurance we had bundled products and before that endownment mortgages and before that unit linked whole of life policies. Did we trust them in the 80's then again in the 90's and again to present date?

Just how many times do so many people have to be bitten to be shy? Just how many times do they fail to make a thorough examination of a finacial proposition which involves parting with their hard earned money?

Is it too sensitive an issue to state as a population we keep reinforcing the view that we are financially incompetent. As a population we lack an understanding of basic personal finance issues and because of that we are easy prey. From primary school up we need to be educating our children to enhance their future financial capability.

very interesting

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Sumatra said:

Is it too sensitive an issue to state as a population we keep reinforcing the view that we are financially incompetent. As a population we lack an understanding of basic personal finance issues and because of that we are easy prey. From primary school up we need to be educating our children to enhance their future financial capability.

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Sumatra raises a very valid issue but in the general publics defense, I know from talking to customers that severe hard selling of life assurance/mortgage protection products is being done by the banks. Customers have told me of some of the techniques being used to put pressure on customers to buy more expensive products. While the banks can no longer "bundle the mortgage protection policy" they make every effort to ensure that the client puts the business with them regardless of the customers best interests.

As long as bank sales people have monthly/quarterly sales targets to reach, in my opinion there will be hard selling of products not necessarily suitable to the individual customers involved. The whole of area of hard selling by bank staff with targets to be met needs to be looked at by the Central Bank because target based selling can run contrary to the best interests of the customer.

Sumatra,s issue has some validity, but consider this.

You buy a Car , it turns out to be a Lemon. Since both you and the Garage Know you have good Consumer Protection the problem does not even get as far as a real issue.

Banks are Not only supposed to be under Consumer Legislation , they are in under REGULATED ENTITIES Codes.
This should mean Consumers are further protected from any thieving or cuteness that Banks might get up to.

As Sumatra said , this isn,t the first time Banks have been @ best unfair !
StevieC, mentions Central Bank.

Stevie, This is the same Central Bank who was/is supposed to Regulate.

I ask you, Mr Customer V Mr Bank , Mr Bank will win , particularly since MR Central Bank does not enforce.

It ishard to accept that our Central Bank/Ombudsman are being just ?

I think banks should be stripped of the ability to cross sell insurance & Investment products. In nearly 20 years of being involved in insurance I have constantly witnessed banks miss sell various products. Not to say that agent's or brokers are squeaky clean regarding this issue, so why not bring in a fee based system which could only have a positive effect for consumers.

Jimbobp said:

I think banks should be stripped of the ability to cross sell insurance & Investment products. In nearly 20 years of being involved in insurance I have constantly witnessed banks miss sell various products. Not to say that agent's or brokers are squeaky clean regarding this issue, so why not bring in a fee based system which could only have a positive effect for consumers.

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On PPI & Mortgage ppi , I have some sympathy for Professional Insurance people.

By & Large the miss-selling was by target Driven Bank people not insurance people.
The Banks have sullied the Name of Insurance.
It means people are Very Untrusting of Insurance even when they are properly advised .

In the UK there is less chance of the banks mis-selling financial products as they have learnt from their experience. Here banks continue and now with more vigour than previous, to sell someone a product even though they know it is not suitable for them. They bring customers in for a financial check up and their sales persons are still in the sell, sell, sell mode with little respect or regard for the best interests of the consumer. Now more than ever when the consumer wishes to exercise their right to effect business elsewhere obstacles and unnecessary hoops are placed in their way as a deterrent. Nothing learnt and nothing protecting the consumer.

Sumatra said:

In the UK there is less chance of the banks mis-selling financial products as they have learnt from their experience. Here banks continue and now with more vigour than previous, to sell someone a product even though they know it is not suitable for them. They bring customers in for a financial check up and their sales persons are still in the sell, sell, sell mode with little respect or regard for the best interests of the consumer. Now more than ever when the consumer wishes to exercise their right to effect business elsewhere obstacles and unnecessary hoops are placed in their way as a deterrent. Nothing learnt and nothing protecting the consumer.

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Sumatra .Largely agree with you.
It is in Banks Nature to steal under the guise of advice.

Not so sure Uk Bank have or will learn . Lloyds got heavily fined for still messing on ppi (my pet hate) 3 weeks ago .


As the saying goes {you can paint a leopard white, it still has spots}

Banks are still permitting Bad practice and still permitting stealing.
Case.

Customer in 2011 asked to go on interest only.It was agreed PROVIDED she increased insurance. Customer then aged 31 and healthy was being charged 44 per month.

NOTWITHSTANDING she was in money difficulty insurance now 86 per month.
Would someone in Insurance on AAM get me a price for GOOD mortgage protection on 24 years on mortgage k105 and say k150 straight life cover.

I may be wrong but looks like our Banks even in 2011 just can,t stop stealing!

Listened to UTV last night;
Car sales are up 26% , 0ne of the reasons quoted was people using their PPI refunds to make deposits.

How come people in N Ire can have valid claims processed on ppi , yet our Central Bank/Ombudsman allow us to be robbed ?