11 July 2018
There are many factors that come in to play when a customer is looking to make a compensation claim.
But one confusing factor is that payment protection insurance (PPI) is a generic name. In other words, banks and lenders called their PPI policies by different names.
With this is mind, we decided to re-cap on PPI and the whole sorry scandal.
PPI is Payment Protection Insurance, the name given toan optional financial productcustomers could add on - for a monthly premium payment - to their loan, mortgage, credit card or other credit accounts.
The overall aim of the PPI policy was for it to make the repayments on the account in the event of loss of income.
The over-riding issue was the way in which PPI was sold. For example, not all customers were aware they had the policy and so were unable to make an informed choice.
Whilst it is a good idea to insure your income, there were exclusions under the policy that people were not made aware of, such as excluding cover for people who were retired.
For many customers, they were paying a lot of money for a policy that was of very little practical value to them. Statistics show that PPI policies paid out on an average of 15% of claims, an incredibly low pay out rate. Compare that to car insurance, for example, which pays out in 80% of claims made.
There was an investigation into how these PPI policies were sold and what became apparent very quickly, was that the selling of PPI wasgrossly unfair. As a result, you are now able to claim back premiums pays, interest and in some cases, fees and so on that were also applied to the account.
PPI is a product of many names, making it hard to tell in some cases if you have PPI or some form of it on your credit card, loan or mortgage account. Here are just a few;
The task at hand is quite simple - you need to check all your paperwork and look for a policy that says it will, if you are unable to do so due to loss of income, make the repayments on your behalf.
This a PPI type policy and the likelihood is that you could have a genuine and eligible claim for compensation.
Interested in claiming back thousands of pounds? Call Scottish PPI Claims.