11 October 2016
Sounds like a good idea, protecting your finances against unemployment or redundancy. But, when you look closer, the PPI policy you were 'sold' may not have been everything you thought it was…
One major issue with the mis-selling of payment protection insurance (PPI) was the way in which it was sold. Many sales representatives gave the impression that it was a condition of the loan - in other words, you had to buy it or you were given the impression that to do so would place your application in a more favourable light - something that is against the rules of fair selling.
There were many exclusions under PPI policies but one significant one that affected a lot of people related to medical conditions. Mental health illnesses were often not covered, nor back problems unless they were significant spinal issues and neither were known, existing medical conditions covered - things that the bank or lender may have neglected to tell you.
There were also limitations relating to employment and PPI policies, again these were conditions that the bank or lender may have failed to make it completely obvious. For example, people who were self-employed were rarely covered, and certain dangerous occupations were also excluded. Customers were also surprised that because they worked part time, they were not covered although this was not made obvious to them.
Most PPI policies covered a 5-year period but the term of your loan could have been much longer. However, you may not have been made aware of this meaning that you thought you were covered for the entirety of your loan but in fact, you were not.
If you did try to claim on your PPI policy, and you were eligible to do so, you will have found the claim process to be long and somewhat complicated. Also, your chances of having a successful claim were low - the Office of Fair Trading found that only 15% of claims on a PPI policy were paid out.
Do you have a claim for PPI compensation?
These are just five reasons why PPI could have been mis-sold to you. It is not an exhaustive list, but a list of the five top reasons why PPI was mis-sold.
There is an announcement due any day relating to a PPI compensation deadline but don't wait - start your claim today. Pick up the phone and call Scottish PPI Claims.