Hi Mac, I am going to disagree with you for the second time today.
PPI was a massive rip-off of the unwary and the unsophisticated. People on modest incomes worry about debt, redundancy and homelessness much more acutely than professionals like us. I would have thought that you never entered a PPI contract. I never did as I have always considered that on modest risks such as losing my job I could, effectively, self insure. Same thought process on extended warranties too.
I think I read recently in an Old Eyes post a quote from a banking manager who said “it ain’t a loan unless its got PPI attached to it”.
These policies were sold willy nilly to customers whether or not they ran much risk and they were also sold to people who would never be able to claim on the policies such as the self-employed.
Further, the premium to payout ratios on PPI were found to be extremely high. A hallmark of rip-off insurance.
So, yes I disagree with you. The policies were a complete rip-off primarily designed to deprive customers who did not understand what they were buying of their money…massively disproportionately.
When we are talking about our banking institutions, I think that customers should be able to expect fair treatment backed up by adequate regulation. So, as a LLOY and RBS investor, I do not begrudge customers their compensation even if I have concerns about the methods of somebof the claims handling companies.
Frog in a tree