There is no doubt that the payment protection insurance (PPI) scandal is the most serious to have affected the UK banking industry – let alone the consumer – in its history. Designed to help customers keep up repayments on loans or mortgages if made redundant, PPI policies have been mis-sold across the board, as found in an investigation a few years ago. But how did the saga unfold, and what led to the widespread mis-selling that is the subject of such concern?
How the PPI Scandal Began
Before our history lesson a word of advice: so far it is estimated that less than two thirds of all valid claims have been put through the system; if you have yet to claim you are advised to use an online PPI calculator company where you can get a quick estimate of the amount you may be entitled to, and then to get your claim in motion. Now, many people believe the scandal began in the early part of the 21st century; however, the very first successful case was, in fact, in the early 1990’s, but it was hidden away by a non-disclosure agreement that meant it did not come to light until a decade later.
The Recent History of PPI
The current state of the PPI claims scandal sees many thousands of people currently claiming back mis sold fees; with £10billion having already been repaid, and up to £25billion estimated to be the final cost of the scandal, it is clear that many people have yet to make the claim to which they are entitled. Despite the banks trying to impose a claims deadline the talks failed to reach agreement hence there is no foreseeable end to the saga. If you have yet to claim, now is certainly the time to do so.
Nothing in the world is free and a credit card that presents itself to you as free is not actually what it might be. Credit cards are convenient items; they allow you to purchase products and having to pay for it later. However, if you fail to manage your credit card bills properly, you can find yourself in a world of debt. Consider the following to ensure that you can make proper use of your credit cards in the best way possible.
One thing people know about credit cards is that they help you get financing and discounts for items that you can purchase, but you’ll need to know more than that. Sometimes, credit cards come with PPI. They are named differently but ultimately, they are all similar. If you can’t comply with the PPI’s terms, you are in trouble of repaying items you can’t actually make use of.
Financial advisers might also tell you the PPI is a free product because of your high credit score. Again, read the terms and conditions. Selling it as “free” is something that allows financial advisers to get away with mis selling you such insurance products. You wouldn’t want the hassle of having to use a PPI calculator to track your mis sold repayments in the future, right?
Credit cards usually have a 3.5 to 4.0% interest on its outstanding balance, so be sure to repay your bills in full per month to keep the card “free”. Even if the minimum amount is quite a tempting offer, resist it and pay in full. Your finances will surely suffer a lot by the end of the year if you keep on paying your card’s minimum fee.
Keeping track of all the items you’ve purchased using your card is important. Be sure to note them down all in a notebook. Take note of your credit limit. It is bad practice to continue spending with your card until you hit your limit.