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Scotland Wide PPI Specialists

5 PPI Mis-Selling Reasons

30 April 2018

When you claim your money back, the bank or your lender will want to know why the PPI policy was either mis-sold to you or wasn't suitable.



This may sound daunting, especially in the light of some cases being rejected by banks. But the Financial Ombudsman are still finding in favour of the customer in disputes. With a PPI deadline 2019 looming, NOW is the time to claim your money back.

But what reasons are there for mis-selling? Here are just five examples (*your case may vary - our team will help);

1: you were self-employed, employed or retired when the PPI policy was recommended and sold to you

PPI is about protecting repayments under a specific set of circumstances and criteria that, in the main, did not apply to people whose income status fell into these three categories. Unemployment cover was included in the vast majority of PPI policies which, in a self employed, unemployed or retired capacity was effectively worthless.

In other words, you were paying for a policy that did not fit your lifestyle. Likewise, PPI policies had an upper age limit too and so for those people that were over this age limit, the policy was again, effectively worthless.

2: you were sold PPI, even though you had a pre-existing medical condition

A standard exclusionfrom the majority of PPI policies were pre-existing medical conditions. As with most insurance products, the more the policy does or covers, the more it will cost. However, many people with pre-existing medical conditions were not made aware that their illness was excluded and so agreed to the policy, assuming that it covered them. Unfortunately, if you were off work due to this condition, you would be unable to claim on the policy…

3: you thought PPI was compulsory or were 'advised' to buy it

 In many cases, customers were given the wrong impression about the purchase of the policy with many banks and financial companies implying or 'giving the impression' that the purchase of PPI was either compulsory or, gave their application abetter chance of being successfulif they bought the policy too.

4: you were sold a policy that did not suit you

In fact, you could argue that the vast majority of PPI compensation claims fall under this heading but, this refers specifically tosingle premium policies. These policies were charged or added to your loan as one lump sum and, in many cases, the term of the policy was not the same as the term of the loan. Hence, if you attempted to make a claim in the final few years of the loan, you may have found that there was no policy on which to claim as it had ended.

5: you didn't even know you had PPI!

And this is why you need to check! PPI was added in many cases without your knowledge or, the 'opt in' box was already ticked.

Do you have a claim for PPI compensation? Find out with Scottish PPI Claims…