Rather than talk about which party we are going to put into office next week, I have a genuine question that I would appreciate a proper answer to?
I moved to the United Kingdom for working opportunities last month (I voted yesterday by the way, so hopefully can come back when there are some decent jobs going). One thing that has got me a bit curious though, is the payment protection insurance (PPI) that people are in the process of claiming back from banks over here (I have started work at a company that handles PPI Claims ).
Basically, what has happened is as follows:
Banks and third party financial institutions were attaching this to packages without the consumer being aware that it existed (Mortgages, Credit Cards & Loans). It is an insurance product that enables consumers to insure repayment of loans if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt. The scary thing though, is that their PPI is between 18% - 26% of the total debt. So people who took out a £100 000 mortgage are getting thousands back! Whole companies (Like the one I work for) have been set up with the pure intention of assisting people claim back the debt from the banks (Who have been forced to set aside billions of Pounds for this purpose).
I am curious as to what the banks in South Africa are up to? With ABSA being owned by Barclays, it wouldn’t surprise me if this fraud has crept into the South African banking system? I have never taken a mortgage or any other form of credit, so I wouldn’t be able to scan through my own paperwork. I would put the chances as pretty high that the banks have been robbing us, but would just like the clarity (Thanks).