In the United Kingdom today, life became peachy because of mis sold PPI. Millions of UK citizens are filing for PPI claims to get back all the repayments they’ve made for the faulty insurance. One of the key factors that made the mis selling of almost every UK citizen in the country are the insurance brokers and financial advisors. Through their efforts, many were urged to purchase the insurance. This brings up the question if you can still really trust the financial advisors, brokers and other related professions in the country nowadays?
Well, if you intend to make a PPI claim, here’s what insurance brokers usually mis sell the insurance. An insurance broker mis sells the PPI insurance policy by explaining its benefits to you in a detailed manner especially if you have multiple financing. PPI can provide repayments for up to one year for all customers. Then, logically, they mention that the insurance policy’s benefits increases bank confidence in their application for a new loan. Insurance brokers sometimes omit certain parts of the insurance’s terms and conditions to make a sure sale to their customers.
One of the many things customers should watch out from their insurance brokers or financial advisors is how they are paid. Some are paid by commission, especially sales representatives of such financial products. Those paid by commission are poised to have customers purchase the highest-paying product they have. Like the insurance mis selling, they can use such devious tactics to make a sale for such products you don’t actually need.
These professionals can also work for you on a fixed payment rate or an asset based percentage. You can trust your broker on a fixed payment rate only if he or she is not selling any more financial products and earning commission from such. This is because they can recommend the highest paying products for financial aid.
You can still trust your financial advisors. However, it is clear that the way they are paid for their services affects their motivations in helping customers. It is very important that you understand how they are compensated for their services to understand the level of trust and importance you can give them.