Many hundreds of thousands of financial consumers in the United Kingdom were victims of the wholesale payment protection insurance (PPI) mis-selling scandal. The self-employed were one group of individuals most badly affected.
First off, what exactly is PPI? Also known as mortgage protection insurance or loan insurance, payment protection insurance was intended to extend protection and security to anyone that took a loan, mortgage or other financial product. The security was intended to kick in when an individual’s ability to keep up with repayments was impacted by the loss of employment, illness or other factor that impeded their capacity to keep up with monthly repayments.
That on paper was the intention and while it may seem like a very valuable financial product, PPI rarely if ever worked to benefit the consumer. For the self-employed, PPI would never have worked as the fine print in the terms and conditions excluded them form any cover. Sales staff at the banks and lenders should have been trained to gather all information as well as to disseminate all information relevant to the standard exclusions.
Why were the self-employed excluded from the purported benefits of PPI? PPI was intended to be only offered to those in full time employment whose capacity to keep up with repayments would be impacted if they lost their job or suffered from an illness or other impact on their livelihood. The self-employed in contrast were not covered if their client list dropped, contracts were lost or that effectively their income level dipped. However, the self-employed were sold PPI on a large scale and were therefore the victims of PPI mis-selling.
Self-employed and paying PPI? Claim back your PPI contributions now
If you took a loan while self-employed, you should look to see if you are eligible to make a claim for mis-sold PPI. There is a high chance that you were erroneously sold PPI and that the policy would not have protected you despite making monthly or upfront contributions to a payment protection insurance policy.
Make a PPI claim today
At PPI Return, we specialise in claiming back compensation to anyone that has been mis-sold PPI. While the self-employed were one of the larger groups, PPI was systematically mis-sold and there are hundreds of thousands of individuals still to recoup compensation. Contact our team today on 0800 877 8888 to start the process.