While the payment protection insurance mis selling scandal is not completely black and white, lenders did employ several frequent mis selling tactics. If any of these ring a bell then there is a good chance that you could make a successful claim for a mis sold PPI policy.
Lender says: PPI is compulsory
Many customers were told by their lender that payment protection insurance was a compulsory product when taking out a loan or credit card. This however is not the case; PPI was an optional product, even in the current uncertain financial climate.
Lender says: PPI could help your credit agreement get approved
Some lenders were known to imply if a customer took out payment protection insurance then their loan or credit card application would have a better chance of being approved. The fact was PPI bore no impact on credit applications.
Lender fails to ask about your employment status
A PPI policy only protects those in full time employment. This means if you were self employed, retired or unemployed at the time you took out PPI, you were paying for a policy which may have contained exceptions in the event of a claim. This should have been explained fully you prior to purchase of the policy.
Lenders didn’t ask how you are!
Payment protection insurance was designed to protect policy holders should they be unable to work due to an illness or injury. The catch is if that illness or injury pre-dates the PPI policy and is then the cause of the inability to work, a claim would not be valid making it essential the lender enquired about your medical history.
Lenders says: Nothing
More often than not a lender automatically added payment protection insurance to the credit agreement without the knowledge or consent of the customer. This means many customers who took out a loan or credit card are paying for something they don’t even know they have! Find out if you are one of them by checking the terms and conditions of your credit agreement.
Lenders have collectively set aside approximately £9bn to cover the cost of PPI compensation claims. This shows just how many people were mis sold payment protection insurance. Don’t let the banks get away with keeping money that is rightfully yours.
PPI Return could help you reclaim PPI. We’ve already recovered over £32m^ for customers mis sold payment protection insurance and may be able to retrieve compensation for you too.