Could Video Prevent The Next PPI-Like Situation?

By this point, most of us will have not only heard of PPI ...

21:42 03 September 2018

By this point, most of us will have not only heard of PPI but probably considered looking into whether we could be owed some kind of compensation for loans and credit we’ve taken out in the past. However, while it can be equal parts frustrating and exciting getting back the money we’re owed, it’s important that both consumers and banks learn from this particular mistake. Whether you’re in the middle of the reclaim PPI process, or you’re curious as to how technology could change how we loan, we’re exploring whether video could help prevent such a scandal in the future.

What Happened The First Time?

The PPI ‘scandal’ is essentially the mis-selling of millions of PPI policies to borrowers across the UK. Businesses and consumers alike were sold these payment protection policies under the ruse that they could help them in the case they couldn’t make a payment due to illness or loss of work. In some cases, they weren’t given sufficient information or even told that they were being sold PPI as part of their loan.

There were also cases where borrowers were sold PPI despite already being ineligible to make a claim should it be needed, usually, due to age, a pre-existing health condition or being unemployed or self-employed. While not every PPI policy was mis-sold, very few banks currently have the right documentation or reports to prove otherwise and as a result, are having to pay out millions to claimants across the country.

Due to a simple lack of communication or records of conversation, both consumers and lenders are currently wrapped up in a PPI scandal that’s costing millions. The question is, could this be avoided in the future, and will video be the answer?

How Could Video Help?

As we mentioned before, two of the biggest downfalls that led to the PPI scandal were a lack of communication and insufficient recording and it’s in these two areas that video could definitely come into its own as a potential preventative measure. Many banks are now offering video link chats with their customers, namely Lloyds Bank, Barclays and Halifax, and as a result, the availability of much-needed information for borrowers can be done face-to-face without the need to travel. They can receive the information they need and, with the right technologies and privacy policies in place, banks could go on to record these conversations in compliance with MiFID II and GDPR regulation.

This would not only help to ensure that banks were protected against false claimants by providing evidence, but it could speed up the claims process for claimants that would be successful if there was a mistake to consider in the future.

What Would We Need To Do?

Some banks and lenders are already well on their way to doing the work for us, introducing live chats and video links as a standard part of their practice. With high quality, reliable video software and secure storage facilities, thousands of conversations could be recorded to provide sufficient protection for both lender and consumer should a situation arise.

Changing how we communicate with our lenders could revolutionise the security and trust we have in any one individual bank or company. Whether this would be enough to avoid another scandal is difficult to determine but one thing is for certain – it could make the entire process much more efficient and streamlined for customer and lender moving forward.