If you have been mis sold Ppi (Payment Protection Insurance) or believe that PPI mis selling has been involved in any of your credit card or loan protection insurances, then you can do something about it even if you have never had to use that insurance to make a claim. Financial advisers, finance companies and credit card companies and banks have strict rules imposed on them that must be followed when they offer you PPI to maintain your interest payments in the event of redundancy or illness where your income is reduced. In spite of these rules, mis sold PPI is not uncommon and over two million policies have been provided by means of practices that can only be described as Ppi Mis Sold . Here are examples of what constitutes a mis sold PPI: You apply for a loan and are informed that it will only be approved if you also purchase payment protection insurance. This is to ensure that the lender gets their money in the event of you becoming unemployed or losing income due to illness or an accident.
It might sound a plausible reason to you, but it is illegal - you don't have to take it, and they also likely won't tell you that it's only the interest or maybe the minimum payments that gets paid. You apply for a loan and are informed that your repayments are a certain amount including protection. You have no idea what they mean by 'protection', but agree anyway. That is PPI mis selling because you should have been offered the PPI insurance separately. It is illegal to offer a loan or a credit card or mortgage on the basis that you must also have PPI, and to imply that it must be THEIR PPI rather than inform you that you can get your payment protection insurance anywhere you wish to only compounds their fault. So how do you know if you have been mis sold PPI or not? The above examples are two, and other are:
1-Was it made clear to you that insurance was optional if that is the case? It is so in many cases. 2-Were you informed of exclusions such as pre-existing medical conditions? 3-Are you self employed? Were you asked if you were? PPI doesn't work for you and you should not have been sold it. 4-Are you unemployed? Were you asked this question? Same as above! 5-Most PPI from a single premium payment lasts 5 years. Was that made clear to you? 6-Were you informed that after that 5 years you would still be paying interest on your initial premium because the premium is added to your loan? 7-Were you informed that your premium would be added to your loans and subject to interest? 8-Did your advisor recommend you take a specific PPI policy? If so then after January 14th 2005 he or she should also have given you a 'demands and needs statement' informing you how that specific PPI policy is particularly suited to your circumstances.
Any 'No' answer to any one of these questions could indicate a mis sold PPI and you should take further action. The least action you should take is to investigate the possibility if PPI Information . At the least you may get all your premium payments back. There is no need to feel bad about doing this, even if you liked the person that sold it to you, because they were misleading you. They cannot state that PPI is a legal condition of the loan because it isn't. They can make a suggestion as to the best policy for you if you want one, which will likely be theirs, but they must also give you a written good reason why this particular policy suits you better than the others available. You should be informed that you have the right to choose any PPI policy you want.
A failure to do this constitutes a mis sold PPI if you go on to purchase theirs. They know this, but are relying on your ignorance of the law to simply sign up with their recommendation. Credit card and loan firms that state that taking their own PPI is essential or that offer you a monthly repayment sum that includes their own PPI are also guilty of PPI mis selling and they are well aware of that fact. If you were given the time to do some investigating, you would likely find that you can get equivalent cover for a lot cheaper and their own policies have some very restrictive conditions including the aforesaid existing medical conditions - they are obliged to inform you of these prior to you signing the form. They know that as well. So don't feel sorry for them - they know exactly what they are doing: selling you a mis sold PPI and hoping you don't know it. You can claim compensation and thousands have receiving back money: over £15,000 in some cases. So get to it! Make your claim for PPI mis selling!