PPI should have helped you repay your loans, mortgages and credit cards, but it turns out it won’t function very well for you because your banks used tactics to have you purchase something extra that goes into their profit. Bank mis selling is key to avoiding future incidents of getting mis sold financial products you don’t need. Here’s how banks made the PPI scandal very possible.

1. “We Recommend This to All Our Customers”
This particular strategy is well-known from UK big bank Lloyds Banking Group. Lloyds is essentially the biggest PPI mis seller with over £5.3 billion in repayments. Former Lloyds employees say the bank trained them to tell customers that PPI was essential for their loan and that they “recommend it to all their customers”. PPI has its exceptions, so it cannot be a recommendation for anybody.

2. “This is a Loan Requirement”
Some bank representatives tell customers that the PPI is a loan requirement; they cannot have the bank approve the loan application without lowering its risk value. The notion that PPI lowers risk value is not true because PPI has its exceptions and your credit score is where your bank should only consider your risk value.

3. “It’s a Packaged Deal”
Bank employees would sometimes tell you that the PPI comes with the loan, mortgage and credit card free for one year. This is actually true and you get to repay the insurance the following year. However, you are still mis sold PPI and you are paying for something you cannot make use of.

In case you intend to make a PPI claim, it is essential that you know how to make a PPI template letter and where to submit your claim. You could also ask a PPI claims company to help you sort things out.