David Taylor from payment protection insurance claims experts Gladstone Brookes reveals the techniques some of the high street banks use to sell you £50 billion in often unnecessary payment protection insurance.
“Our research shows that the banks offer incentives to employees to sell at every level: daily, weekly, monthly and quarterly - no matter how crazy the incentive if the manager wanted it they could sign it off. One former employee of a bank even told us of holidays to Paris, 2-week Safari holidays in Africa, laptops, bottles of champagne and straight out cash rewards. This insurance was and continues to be massively incentivised by the banks - the reason they have fought so hard against stopping selling it is that its sales represent pure profit. Once they have sold you a policy that's it - they don't pay out on it, the insurance company does. Commission in hand, the bank goes on its merry way.”
Taylor continues, "Banks train their staff to play on the fears of the customers, with PPI two questions form the basis of the training: Do you really have a job for life? and What happens if you get sick and can't pay the bills? You’ve immediately got someone on the back foot psychologically with these questions; you put customers in a position where they have to agree with you - a great situation to command a sale. This is basically the banks' telling their staff to use your own fears and insecurities against you to sell you PPI.
"This massive pressure to sell on the staff has turned our banks into nothing more than UK sales sweatshops where we are no longer customers but ‘marks’. There is even specific training on how to deal with customers who say no - they call it "objection handling" - or scaring people into the purchase as a sales tactic.”
The information used by Taylor comes directly from the mouths of current and former bank employees.
Income protection insurance news: 7 April 2011