The chances are, the actual statistics of mis-sold PPI are likely to be never fully recognized. Many people who have paid off their loans never knew that they had PPI insurance in the first place, and some may never realize that the PPI they paid for was not suitable for their needs. Recent revelations show that many consumers are confused about the concept of what payment protection insurance is, and how it can be mis-sold.
What is PPI?
PPI, or payment protection insurance is a type of protection offered alongside various lending products such as catalogue credit purchases, store cards, mortgages, loans, and credit cards. It was created to protect payments in case of unexpected sickness, accident or unemployment, generally paid as a one-off fee, or as a smaller payment with each repayment.
Not all PPI is mis-sold, and for many it can prove to be a valuable form of insurance, helping to protect their financial situation during unfortunate circumstance. However, PPI being mis-sold was revealed as an unethical scandal affecting millions.
How is PPI mis-sold?
The mis-selling of PPI has occurred largely throughout the previous two decades, although some claims have been made on PPI before this time. Payment protection insurance has been mis-sold if:
- It was added to the product of lending without the consumer’s knowledge
- The consumer was not informed that the PPI was an optional choice
- The consumer was led to believe that buying PPI would help their loan, mortgage or credit card be approved
- The lender did not properly explain the conditions of PPI policy
- The consumer in question was either unemployed or self-employed when PPI was sold to them
- The consumer had a medical condition that made them exempt from the policy at that time
There are various complications regarding making a claim for mis-sold PPI. For example, you can make the claim after the loan has been closed as long as your account has been active within six years. You can also make a claim on accounts that are active or been active within the last six years if you’re PPI has already been paid off completely. There are ways to claim back PPI that you have been mis-sold, even if you do not have the right paperwork or evidence, or if your credit company has been taken over since the time of taking out PPI.
Make sure that you speak to an expert when claiming the mis-sold PPI payments that you deserve.