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Scotland Wide PPI Specialists

Were Sales Of PPI Driven By Targets?

18 February 2019

What contributed to the PPI mis-selling scandal becoming the biggest issue to have affected the British banking industry ever?


There are many reasons, and one was that PPI sales were driven by targets, along with relentless pressure to meet and surpass these targets.

The total compensation bill is staggering, standing at around £33.6 billion, more than double the budget for the London Olympic Games in 2012. And the figure will rise as the August 2019 deadline approaches.

Banks are setting aside more money to compensate customers for being mis-sold PPI but how was the problem allowed to become so acute? And how come the compensation total is so large?

Undercover Reporting

These figures in themselves illustrate the depth of the PPI mis-selling scandal but an interview with a former bank employee by The Guardian newspaper some years ago shows the true nature of the PPI sales driven scandal.

Their experience relates to 2002 up until the employee left the bank in 2004.

The former employee reveals:

  • The primary focus of their role was to sell PPI on mortgages, accounts, credit cards and loans. Large loans sold with PPI scored the most 'sales points'.
  • The bank had quarterly sales targets to meet and there was immense pressure on teams to meet and exceed these targets.
  • The employee had to sell 10 loans a week, with at least 7 or 8 of these loans with PPI. If they did meet their target (and exceed it), their take-home pay was inflated by commission and bonuses.
  • They were trained in 'disturbance techniques'. In other words, making sure they raised the customer's anxiety levels regarding how they would pay the loan in the event of losing employment etc.
  • Intense pressure from higher up the management chain to meet - and surpass - PPI sales targets.
  • Underperforming employees faced being dismissed, but in practice were moved to non-sales roles.
  • The pressure was immense with many customer advisors leaving their role within 12 months and, should individual advisers fail to meet targets they would have to explain why.

Now, do you see why it is important to claim your money back?

How Scottish PPI Claims can help

We have many years of experience in helping people claim PPI compensation on credit cards, loans, mortgages, store cards, car finance products and more.

We charge a fee for our service, the current details of which can be found on our website. Or, you can call our friendly team who are trained to help you, rather than work against you - unlike the banks in previous decades…

Call us now!