Re-cap – How to Claim PPI Compensation
Even though PPI compensation has been around for seven years or more, we can sometimes lose sight of how to claim compensation, as well as what the whole compensation saga is about.
Here we re-cap on what PPI is and how to go about claiming PPI compensation.
What is PPI?
PPI a specific type of insurance product that was sold alongside credit agreements, such as personal loans, credit cards, hire purchase agreements, car finance, catalogue accounts, store cards and many other kinds of credit.
It was originally designed to protect you, the policy holder, in the event that you were unable to make your monthly repayments on the loan etc. But, concerns were raised about how it was being sold and to whom, as well as its cost.
Why has the mis-selling saga lasted so long?
This is to do with the number of policies sold and the number of people duped into buying the policy by their bank or lender.
It is also because many people were mis-sold more than one PPI policy. Another reason is that the banks and lenders dragged their feet at the start of the process, hoping that the problem would disappear.
For many of the customers involved, they don’t realise they have a claim for compensation, as they didn’t realise they had been ‘sold’ it in the first place.
It didn’t. 34 million PPI policies were thought to have been sold in the UK, affecting millions of customers.
The mis-selling problem
The way in which the PPI policy was presented to you at the time it was sold may be an indication of whether you were mis-sold it or not.
In some cases, the debate as to whether you were mis-sold the product or not can be complex. Thus, it is important that if you are unsure, you seek advice.
However, in the main, many customers were…
- Told the purchase of the PPI policy was compulsory – it is NOT
- NOT told the limitations, terms, conditions and exclusions of the policy – there were many and that means you probably weren’t covered
- NOT told of their eligibility to claim via this policy – in other words, many people were unable to claim on the policy as they simply were not eligible. Would you have bought it, knowing this?
But perhaps the worst-case scenario was when some customers, clearly making an emotive decision to borrow money were told that they were more likely to be accepted for finance if they took out the policy.
Claim YOUR money back
Don’t let the bank get away with it!
Make sure that you check all the paperwork NOW for signs of PPI – should it be on there? Does it cover you for repayments on the loan etc.? Are you eligible to claim?
Why not let Payment Protection Scotland help you claim your money back?