The BIG PPI Questions

“If I agreed to PPI, can I still claim compensation?”

In this mini-series of PPI questions, we focus on some of the BIG concerns that relate to the how and why people claim compensation when the payment protection insurance policy was mis-sold to them.

This question focuses on agreement, and what constitutes a sale where the customer is full aware of what they have bought 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 product sold to you needs to have been fit for purpose and, in the case of financial products and insurance, the person selling it to you has a responsibility to make sure that as far as they are aware, it is a policy that fits your circumstances.

When it comes to claiming compensation for mis-sold PPI in this case, we would look at the following 3 factors:

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. 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!

Were the significant exclusions explained?

PPI was narrow in who it successfully 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’

How many questions were you asked about your current cover levels?In some cases, customers were sold PPI even though they has plenty of cover with other policies. For example, some had cover with work with 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.

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