28 January 2019
Since the scandal surrounding the mis-selling of payment protection insurance (PPI) broke back in 2011, it has thrown a spotlight onto consumer rights when it comes to buying loans, credit card, catalogue accounts and other forms of credit. And one area it has addressed is the buying of insurance products alongside loans etc.
Some people are surprised to find that on applying to borrow money for a bank or lender, that they are told they have to have a PPI or income protection type policy. Can banks do this?
Banks and lenders have always been able to insist that you take out certain types of insurance policies as part of the application process for loans, mortgages etc.
Normally, this has depended on the size and nature of the loan. The more money you borrow, the more likely it is that you will ask to protect the loan in the case of you being unable to make repayments etc.
What the bank cannot do is insist that you buy their policy, like PPI, and theirs alone. There are some important things you need to be aware of too such as;
And so, if the bank insists you have insurance on a loan, they can do so BUT the ball is in your court - you shop around for the right policy at the right price for you.
Yes, you can if you have reason to believe you mis-sold the policy in the first place.
There are many reasons why PPI was mis-sold to customers. Customers were not always asked if they wanted it; it was just added to their account, even though for many thousands of customers it was not a suitable product.
We can help anyone with PPI on their account to claim the compensation they are entitled to. Call us to find out more today!