If I agreed to PPI, can I still claim compensation?
In this blog, we are going to look at a BIG question that our customers raise with us. What you need to remember is that the answer given is a broad one and that for advice specific to your situation, you need to call us.
“If I agreed to PPI, can I still claim compensation?”
This question focuses on agreement and what constitutes a sale. As a customer, the question needs to be asked were your fully aware of what you were agreeing to buy and why?
There are many customers who have knowingly bought PPI from their bank or lender. When it comes to the process of claiming compensation, the financial product sold to you needs to have been;
- fit for purpose
- and the person selling it to you behaved responsibly, making you aware of the pros and cons of PPI as it related to you.
When it comes to claiming compensation for mis-sold PPI in this case, we look at the following 3 factors:
1. Was every aspect of the policy explained in full?
In some cases, the policy was sold over the phone to customers and the representative followed a prescribed script from which they did not deviate.
This is a sales call and had a blanket approach – in other words, everyone was told the same thing. When the customer did ask questions specific to their own circumstances, the answer may not have been forthcoming.
For example, if you told them you were self-employed, and asked if the policy still covered you, the answer should have been that in most cases, no. In order to make a claim, you would have had to have shut your business!
Essentially, asking these kinds of questions didn’t happen because as the customer, you assumed that the person calling from your bank has your details to hand.
2. Were the significant exclusions explained?
PPI was narrow in who it offered cover too and thus, there were many people with a product that did not offer them any significant cover.
For example, were you asked about any existing medical conditions? If not, then the policy did not cover you as these were excluded under the terms and conditions of the policy.
There were other exclusions too such as mental health illness (depression was not covered, for example) and some back ‘injuries’
3. How many questions were you asked about your current cover levels?
In some cases, customers were sold PPI even though they have plenty of cover with other policies.
For example, some customers had cover with their employer, benefitting from a generous benefits package that meant they had this kind of income cover for up to 12 weeks (or more).
Some people may have been asked and even when they did reply they had this kind if cover, were told how much better it would be to also have PPI when this is clearly not the case.
Even if you did agree to PPI, you may still a case for claiming compensation as the policy may have been mis-sold to you. Call Payment Protection Scotland to find out more.