30 March 2015
Compensation for mis-sold payment protection insurance (PPI) is still yours for the taking, if you have an eligible claim. But what is PPI and why has the compensation saga last so long?
It is a specific type of insurance product that was sold alongside credit agreements, such as personal loans, credit cards, hire purchase agreements, car finance, catalogue accounts, store cards and many other kinds of credit.
Originally designed to protect you, the consumer and policy holder, in the event that you were unable to make your monthly repayments on the loan etc., it has seen been found that many of these policies were mis-sold.
The reason why the saga has last so long is linked to many reasons; one is the fact that 34 million PPI policies were thought to have been sold in the UK, and for many of the customers involved, they don't realise they have a claim for compensation, as they didn't realise they had been 'sold' it in the first place.
The way in which the PPI policy was presented to you at the time it was sold may be an indication of whether you were mis-sold it or not; in some cases, the debate as to whether you were mis-sold the product or not is can actually be more complex thus it is important that, if you are unsure, that you seek advice.
But perhaps the worst case scenario was when some customers, clearly making an emotional decision to borrow money - how nervous were you about securing car finance for the much-needed more modern, reliable family car? - were told that they were more likely to be accepted for finance if they took out the policy.
Don't let the bank or financial institution get away with it! Make sure that you check all the necessary paperwork today for any signs of PPI - should it be on there? Does it cover you for repayments on the loan etc.? Are you eligible to claim?