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Topic Review
Biography
Topic Review
Payment Protection Insurance in the United Kingdom
Payment protection insurance (PPI), also known as credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to ensure repayment of credit 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. It is not to be confused with income protection insurance, which is not specific to a debt but covers any income. PPI was widely sold by banks and other credit providers as an add-on to the loan or overdraft product. PPI usually covers payments for a finite period (typically 12 months). For loans or mortgages this may be the entire monthly payment, for credit cards it is typically the minimum monthly payment. After this point the borrower must find other means to repay the debt, although some policies repay the debt in full if you are unable to return to work or are diagnosed with a critical illness. The period covered by insurance is typically long enough for most people to start working again and earn enough to service their debt. PPI is different from other types of insurance such as home insurance, in that it can be quite difficult to determine if it is right for a person or not. Careful assessment of what would happen if a person became unemployed would need to be considered, as payments in lieu of notice (for example) may render a claim ineligible despite the insured person being genuinely unemployed. In this case, the approach taken by PPI insurers is consistent with that taken by the Benefits Agency in respect of unemployment benefits. Most PPI policies are not sought out by consumers. In some cases, consumers claim to be unaware that they even have the insurance. In sales connected to loans, products were often promoted by commission based telesales departments. Fear of losing the loan was exploited, as the product was effectively cited as an element of underwriting. Any attention to suitability was likely to be minimal, if it existed at all. In all types of insurance some claims are accepted and some are rejected. Notably, in the case of PPI, the number of rejected claims is high compared to other types of insurance. In the rare cases where the customer is not prompted or pushed towards a policy, but seek it out, may have little recourse if and when a policy does not benefit them. As PPI is designed to cover repayments on loans and credit cards, most loan and credit card companies sell the product at the same time as they sell the credit product. By May 2008, 20 million PPI policies existed in the UK with a further increase of 7 million policies a year being purchased thereafter. Surveys show that 40% of policyholders claim to be unaware that they had a policy.{{Citation needed|date=August 2010} "PPI was mis-sold and complaints about it mishandled on an industrial scale for well over a decade." with this mis-selling being carried out by not only the banks or providers, but also by third party brokers. The sale of such policies was typically encouraged by large commissions, as the insurance would commonly make the bank/provider more money than the interest on the original loan, such that many mainstream personal loan providers made little or no profit on the loans themselves; all or almost all profit was derived from PPI commission and profit share. Certain companies developed sales scripts which guided salespeople to say only that the loan was “protected” without mentioning the nature or cost of the insurance. When challenged by the customer, they sometimes incorrectly stated that this insurance improved the borrower's chances of getting the loan or that it was mandatory. A consumer in financial difficulty is unlikely to further question the policy and risk the loan being refused. Several high-profile companies have now been fined by the Financial Conduct Authority for the widespread mis-selling of Payment Protection Insurance. The Financial Conduct Authority (FCA) fined Clydesdale Bank Plc (Clydesdale) £20,678,300 for serious failings in its Payment Protection Insurance (PPI) complaint handling processes between May 2011 and July 2013. This is the largest ever fine imposed by the FCA for failings relating to PPI. Clydesdale agreed to settle at an early stage of the FCA’s investigation and therefore qualified for at 30% stage 1 discount. Were it not for this the FCA would have imposed a financial penalty of £29,540,500.Alliance and Leicester were fined £7m for their part in the mis-selling controversy, several others including Capital One, HFC and Egg were fined up to £1.1m. Claims against mis-sold PPI have been slowly increasing, and may approach the levels seen during the 2006-07 period, when thousands of bank customers made claims relating to allegedly unfair bank charges. In their 2009/2010 annual report, the Financial Ombudsman Service stated that 30% of new cases referred to payment protection insurance. A customer who purchases a PPI policy may initiate a claim for mis-sold PPI by complaining to the bank, lender, or broker who sold the policy. Slightly before that, on 6 April 2011, the Competition Commission released their investigation order designed to prevent mis-selling in the future. Key rules in the order, designed to enable the customer to shop around and make an informed decision, include: provision of adequate information when selling payment protection and providing a personal quote; obligation to provide an annual review; prohibition of selling payment protection at the same time the credit agreement is entered into. Most rules came into force in October 2011, with some following in April 2012. The Central Bank of Ireland in April 2014 was described as having "arbitrarily excluded the majority of consumers" from getting compensation for mis-sold Payment Protection Insurance, by setting a cutoff date of 2007 when it introduced its Consumer Protection Code. UK banks provided over £22bn for PPI misselling costs – which, if scaled on a pro-rata basis, is many multiples of the compensation the Irish banks were asked to repay. The offending banks were also not fined which was in sharp contrast to the regime imposed on UK banks. Lawyers were appalled at the "reckless" advice the Irish Central Bank gave consumers who were missold PPI policies, which "will play into the hands of the financial institution."
749
25 Oct 2022
Topic Review
Club Nintendo
Club Nintendo is a discontinued customer loyalty program provided by Nintendo. The loyalty program was free to join and provided rewards in exchange for consumer feedback and loyalty to purchasing official Nintendo products. Members of Club Nintendo earned credits or "coins" by submitting codes found on Nintendo products and systems, which could be traded in for special edition items only available on Club Nintendo. Rewards included objects such as playing cards, tote bags, controllers, downloadable content, and warranty extensions on select Nintendo products. On January 20, 2015, it was announced that Club Nintendo would be discontinued in North America on June 30, 2015, and in Europe and Japan on September 30, 2015, due to an upcoming new loyalty program. Flipnote Studio 3D later became available to all North American Club Nintendo members for free for a limited time, and users who signed up to the European version of the new loyalty program during the launch period received Flipnote Studio 3D for free. On March 17, 2015, after suddenly announcing their business partnership venture with DeNA, Nintendo stated that they were working with them on a new, cross-platform membership service called My Nintendo to supersede Club Nintendo for the Wii U, Nintendo 3DS , and Nintendo Switch, alongside other devices such as tablets, smartphones and PCs. It was initially launched in Japan on March 17, 2016, alongside Nintendo's first mobile title, Miitomo.
749
17 Nov 2022
Topic Review
The Macroeconomic Effects of a Pandemic in Pakistan
The eruption of COVID-19 has jolted the national and international economy. Pakistan is included, causing millions of people to stay at home, lose their jobs, and suspend or end business operations. Unemployment in Pakistan has reached nearly 25 million people, driving many towards conditions of hunger and poverty as the major economic damage in several sectors is anticipated at around PKR 1.3 trillion. The hardest-affected sectors comprise industries such as tourism and travel, financial markets, entertainment, manufacturing, etc., having a devastating effect on gross domestic product (GDP). It is mainly daily-wage earners and people running small businesses that have been seriously exploited and subjected to a curfew-like situation.
748
25 Jan 2022
Topic Review
Young Employees’ Perceptions about Employability Skills for E-Commerce
With the digital transformation of businesses, digital marketing has been a prominent feature of organizations in the 21st century. Changing consumer behavior has also created a need for versatile hard and soft skills for marketing professionals. Given the dynamic growth of the e-commerce market and the trends mentioned above, it is expected that the needs of the labor market will also change. University education aims to develop key competences. Understanding which competences are considered important could improve the motivation of students.
747
19 Dec 2022
Topic Review
Corporate Social Responsibility on Earnings Management
As it evidences the need to promote research on responsible business practices in order to formulate policies that enable the implementation of CSR (Corporate Social Responsibility) practices that favor EM (Earnings Management), therefore, researchers should follow the recommended directions and fill the existing knowledge gaps, thus extending the body in this field, developing better and more precise hypotheses and research questions, and, therefore, increasing the quality of research on the influence of CSR on EM.
747
20 Dec 2021
Topic Review
Religion in Human Consumption
Religious belief, as an informal social institution, has a significant impact on all aspects of human civilization. Specifically, in the western area of China, low income level, and low marketization degree, religious belief negatively affects human consumption the most. On the contrary, in the eastern area, high income level, and high marketization degree, religious belief negatively affects human consumption the least.
747
30 Dec 2021
Topic Review
Leadership Roles for Sustainable Development
Leadership roles of individuals and institutions, especially at the local level, are imperative for sustainable development. However, research on sustainability education has neglected to incorporate entrepreneurial skills into other relevant capabilities such as foresight, complex problem solving, and interdisciplinarity approaches, although possible convergences between sustainability education and entrepreneurship education have been addressed by researchers Therefore, several ways of leadership, such as transformative, behavior, and/or collective leadership, etc., especially in the hospitality industry, have been observed, and these leadership practices required appropriate integration of all aspects related to the hospitality industry to promote green tourism. However, inadequate integration between quantitative methods and community-engaged social sciences and humanities approaches, inadequate engagement with social movements and grassroots activism, as well as some important gaps in the theorization of the commodification of nature are the challenges of sustainability leadership in the hospitality industry. Moreover, barriers related to the novelty of Sustainable Product–Service Systems models require new attitudes to small companies, including changing mindsets from product ownership to use. Green practices in hotels are the important environmental management approaches of the hospitability industry. The green practices contribute to mitigating the impact of climate change via reducing carbon emission and fostering global sustainability in line with the COP (Conference of Parties) 21 Paris Agreement of the United Nation’s sustainable development goals (SDGs) in 2015.
746
11 Oct 2021
Topic Review
Youth Entrepreneurship
Youth unemployment is one of Africa’s biggest challenges, but compulsory entrepreneurship training can turn the continent’s job-seekers into job creators, writes Abiodun Egbetokun. First published on https://sciafmag.com/2020/02/26/three-lessons-from-nigeria-on-how-to-boost-youth-entrepreneurship/
746
01 Nov 2020
Topic Review
Alternative Marine Fuel
While the marine sector contributes significantly to the global economy, its environmental impact is a cause for apprehension due to growing concerns about ship emissions. The International Maritime Organization (IMO) has set decarbonization strategies consistent with sustainable development goals. The impending legislation aimed at reducing greenhouse gas (GHG) emissions from maritime shipping by at least half by 2050 and to zero by the end of the century. A growing body of research has focused on alternative marine fuel selection.
745
11 May 2022
Topic Review
Sustainable Development Planning and Project-Based Learning
The educational subject of Sustainable Development Planning in Europe is evolving due to the implementation of the Bologna Agreement across the European Higher Education Area (EHEA). A project-based learning strategy for training Sustainable Development Planning in postgraduate programs, in Spain (Universidad Politécnica de Madrid, UPM-GESPLAN). This project-based learning strategy is applied to an International Postgraduate Program for Sustainable Rural Development.
745
14 Sep 2022
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