Am I entitled to PPI Compensation?
Payment protection insurance (PPI) was mis-sold on a huge scale. Every British bank, lender or financial institution was in varying degrees, part of the PPI mis-selling scandal that has rocked the banking industry to its core. No one predicted at the start how big a problem this was.
Today, with the end possibility in sight, people are still claiming vast sums of compensation after being mis-sold PPI. The following story may convince you to look again at your loans, credits cards etc. to see if there is PPI lurking there.
Mr and Mrs K. had been married for several years but they divorced many years ago. Splitting their financial arrangements was complex but, they agreed to deal with their main debt, a large loan, by continuing to both make payments.
Some years later, Mr K. fell ill and after some time in treatment, he was told that the possibility of him working for the next few months would be almost impossible. This was a bitter blow. But Mr K. felt confident that he would be able to cope financially as he had a variety of insurances in place, including PPI.
Mr K. however was shocked to find that the PPI on the joint loan would not cover him. The bank said that this was because the policy covered only Mrs K. who the bank decided was responsible for paying the loan back and was therefore the main customer.
This was not an arrangement that Mr or Mrs K. had put in place; they had both assumed that because they had bought the policy on a joint loan application, that they would both be covered.
The bank representative also went on to explain that not only was Mr K. not covered but the policy had expired the previous year. Neither Mr nor Mrs K. were made explicitly aware that the policy lasted a shorter term than the loan itself.
Thankfully, Mr K has other, more reliable insurance policies that helped him through this difficult financial time. But, he has since made a successful claim for PPI compensation.
- Mr and Mrs K. made it clear that they had not been told that the PPI policy only applied to Mrs K. It became apparent that should would not have covered by the policy as she worked less than 16 hours a week.
- Neither customer had been made aware that the PPI insurance for a five-year policy; their loan was taken out over 8 years, meaning the last three years of the loan were not covered but they were still paying premiums and interest.
- Both Mr and Mrs K. felt they had been advised to buy the policy at the time they took out the loan. It was a large, debt-consolidation loan and they felt that by protecting it with PPI they were being sensible.
Mr and Mrs K. were awarded a substantial sum in PPI compensation.