Mis-sold PPI

Steps to have successful a PPI claim

Have you been missold PPI?

Payment protection insurance also known as PPI is an insurance product generally used to cover an outstanding debt. The debt can be in a form of loan or overdraft, and PPI is generally sold by banks and other credit suppliers as an add-on to the outstanding debt.

What does PPI cover

PPI covers the borrower against circumstances that may keep him from earning a living, for example an accident, continuing illness or sudden unemployment, which may also prevent him from repaying his debt.

Rules of selling PPI

There are certain rules and regulations that lenders or insurers have to follow to comply with regulations. PPI is actually an excellent product. However in the last few years many customers who have taken out loans have found they have been mis sold PPI.

Were you given a choice on which PPI provider to use?

Many people do not realise that they could also buy PPI from other buyers and hence did not compare prices with other providers on the market. This has led to many people in the UK being over charged.

What exactly is mis sold PPI? AND How did this PPI mis selling occur?

The most common way being mis-sold PPI is when the sales representative sells PPI without acquiring complete information from the customer.

For example, the lender may sell PPI without confirming that if the customer has already purchased a insurance policy to cover him in case of any mis happening. In that case PPI will not be useful for the customer instead he will have to pay for something he is already covered for.

Have you been mis-sold a joint policy?

Another mode of PPI mis selling can be in the form of a joint policy held in one person’s name. If a joint policy is in one person’s name the only that person is entitled to the PPI claims. But if the policy supplier informs you that both the persons are entitled to the PPI claim back and the document does not support the supplier’s claim then the PPI has been mis sold.

Are you a student, unemployed or retired?

A very important point to note about PPI is that it does not cover students, unemployed, part-time or retired people. The worst way that the mis selling of PPI may occur is selling the policy to someone who is not suitable for the policy that is he may not be able to claim against the insurance if required. For example if PPI is sold to a student who is still not employed or to some one who is unemployed at time of purchasing PPI, in both the cases the PPI is mis sold.

Were you offered a complete medical check up?

A complete medical check up of the customer willing to take the PPI by the policy supplier is essential before selling some policies, because the policy supplier must be aware of any medical condition that may keep the customer from buying the policy. In case the customer is not enquired about his medical conditions and is sold PPI, then it will be a case of mis selling of PPI.

The true statistics of mis sold PPI can never be calculated. But keeping in mind the above mentioned factors you may save yourself and your family and friends from mis selling of PPI.

Click here to complete your PPI Claim Form