Mis sold PPI (payment protection insurance)
Mis sold PPI: The country's biggest payment protection racket?
There has been a lot of coverage in the media lately regarding the mis-selling of PPI. Thousands of people have made claims against their bank or building society and The Citizens Advice Bureau has dubbed the scandal the biggest protection racket of all time, but what is ppi?
Payment Protection Insurance (PPI) is a type of cover sold alongside credit and store cards, loan, mortgages and hire purchase agreements. It is designed to step in and cover debt repayments in the event the policyholder cannot work due to sickness, accident or redundancy.
In 2005 The Citizens Advice Bureau submitted a super complaint to The Office of Fair Trading (OFT) demanding an investigation into the Payment Protection Insurance market and the way in which policies were being sold. As a result, in 2006, The Financial Services Authority (FSA) and the OFT published reports criticising many lenders for failing to protect customers and expressing concern that many people may have been mis sold payment protection insurance policies. The OFT and FSA reports opened the door for customers who had been mis sold PPI to make claims and get their money back.
PPI can be known by many other names including:
- Lifestyle Protect
- Payment Break Plan (PBP)
- Accident, Sickness, Unemployment (ASU)
- Payment Protection Cover - usually on credit cards (PPC)
- Mortgage Payment Protection Insurance (MPPI)
- Loan Cover
- Life Choices cover
- Payment Protection Cover for credit cards, Accident Sickness and Unemployment Cover or Mortgage Payment Protection / Loan Protection for loans and mortgages
- Payment Protection (also broken down into Accident and Sickness/Involuntary Unemployment)
- Cardholder Repayment Protection (CRP)
- Payment Care
Although many lenders do use different names this is essentially the same product.
Have you been mis sold PPI?
The list below highlights some of the ways in which customers may be mis sold insurance.
- The full cost of the policy was not explained.
- In order to make an informed decision you should have been given full information regarding the cost of the policy. If you did not receive this information you may have been mis sold PPI.
- The terms and conditions were not made clear.
- As above, you should have been made fully aware of all the terms and conditions before you were sold your policy.
- You were in full time education, self-employed or retired.
- PPI cover is designed to protect you if you are unable to work due to sickness, accident or redundancy. If you were not in employment you should not have been sold this policy as it would have been of little/limited use to you. If you believe you were mis sold a PPI policy in this way you should make a claim.
- You were over the age of 65.
- Many PPI policies do not cover people over the age of 65. If you were over 65 and were sold a policy you could make a claim.
- You were not asked whether you had pre-existing medical condition.
- Most policies do not cover pre-existing medical conditions. In order to ascertain whether the cover was right for you, your lender should have asked you about your medical history. If you were not asked these questions you could be eligible to make a claim for mis sold PPI.
- You had cover in place elsewhere or were entitled to sick pay from your employer.
- As part of your assessment your lender should also have checked whether you needed the cover. If you already had cover or were eligible for full sick pay from your employer the policy would only be of very limited use to you.
- The policy was added without your knowledge.
- Unfortunately, many people were mis sold PPI in this way. To find out whether PPI was added to your loan without your knowledge check your original loan agreement or a recent statement.
- You were lead to believe that taking out the cover would improve your chances of your loan/credit application being approved.
- Taking out PPI would not improve your chances of gaining a loan or credit. If you were told this, you were given the wrong information and could make a claim.
Mis sold PPI: What to do next...
For further information and specialist help from Belmont Thornton, simply complete the quick claim form on the right of the page or call us today on 0207 471 2000.
You could soon be joining the thousands of people who have already successfully claimed a refund.
Remember, we do not just assist people in claiming for mis sold PPI we can also help you to reclaim unfair credit card charges. There is no limit to how many claims you can make and you can even make a claim if you have paid off your loan or credit card or closed your account.
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