I Agreed to buy PPI. Is There Still a Claim to be Made?
We are asked questions all the time in relation to claims for compensation when a customer feels that payment protection insurance (PPI) was mis-sold to them.
Some are easy to answer but others can present more of a puzzle. One question we are often asked is that as a customer, you may have agreed to buy PPI and this leaves you wondering if you have a claim for compensation. Surely, you may think, that by agreeing to PPI you have no course for redress.
However, you may be surprised to learn that you can make a claim for compensation. And here’s why:
#1 Were you told or made aware of exclusions under the policy?
Not all insurance policies are the same. For example, home contents insurance will vary from one provider to another, but will also vary depending on the cover offered. Some policies will include accidental damage for example.
PPI was often sold as a policy that would cover repayments if you were unable to work but in some cases, the exclusions under the policy were not explained. You may not have been told, for example, that any pre-existing medical conditions were not covered or that ‘bad backs’ were not covered, neither were mental health conditions or illnesses.
In other words, you may not have been told of an exclusion that not only have affected you making a claim on the policy but which would have meant you were not covered by it.
#2 Were you given the impression PPI was compulsory and agreed to purchase it ‘be default’?
Again, many people feel they agreed to the PPI policy because they had no reason not to or because they felt that they were told or given the impression it was compulsory or that it was compulsory to buy their product.
A bank can insist that you buy an insurance policy to cover a significant debt but, they cannot specify whose product you can buy, or that it has to be one of their own. They can stipulate what the insurance policy should cover but at no time are you duty-bound to buy their policy. You are able to shop around to find the right PPI policy at the right price.
#3 You agreed because you thought there was no other option
Similar to a compulsory purchase of PPI, this reason goes on to look at other insurance policies and employer related benefits that may have covered your loan in the event you were unable to make repayments.
There have been cases of customers being told that other policies were not good enough hence, they went ahead and purchased PPI.
If you have a claim for PPI compensation and would like to know how we can help, call Payment Protection Scotland for a no obligation chat.