Test Your PPI Compensation Knowledge
Payment Protection Scotland has been working with customers to help them claim compensation for mis-sold payment protection insurance (PPI). We have helped thousands of customers over the years but there are some things that people see as ‘fact’ about PPI, when in fact the opposite is true.
Here, we take a look at some of the ‘facts’ that circulate – and tell you the truth behind them!
PPI was/is a compulsory purchase
There is a plus side to the PPI mis-selling saga. Customers are now more aware of their rights when it comes to buying products. Not many people realised, for example, that the same set of consumer rights governed the purchase of financial products.
Many people were told – or it was inferred – that the purchase of a PPI style product alongside their main loan etc. was compulsory as the bank needed to take steps to protect their money. In other words, if you couldn’t pay the insurance policy would kick in, providing the circumstances were right.
This is not the case. It never has been the case. And it is not true today. You do not have to buy any kind of policy alongside your main product. The only time when this may differ is in light of mortgages but again, you do not have to buy the bank’s own product – you can shop around for better product at a better price.
PPI is no longer for sale
PPI is an insurance product that can still be bought today. In essence, there is nothing wrong with the product but more the way in which it was sold.
However, that said, there have been many changes to the PPI type product that banks are now offering. They can offer you additional products, but have to give you a full seven days after buying the main product before they offer you anything else.
It needs explaining fully, as well as the benefits of the PPI product to you. Consider any additional products that you are offered carefully and don’t forget to ask for written advice if the bank are advising you buy a certain product, such as an insurance policy.
PPI compensation is automatic
Banks and lenders may have written to you advising you may have been mis-sold PPI and to make a claim but, compensation is not automatic.
It does need to be proved that you were mis-sold the product and in many cases, this is a simple and straightforward process.
Payment Protection Scotland can help you to claim back every penny of premiums paid, along with any costs or fees associated with being sold PPI. Why not find out more?