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Scotland Wide PPI Specialists

Everything You Need to Know About PPI

23 July 2018

Payment protection insurance (PPI) and it's now infamous mis-selling to thousands of customers have highlighted many key facts in how and when some policies or additional products should be sold alongside the main product.

However, it is easy to be confused by what should or can happen, and when something is being sold erroneously.


My bank is advising that I take out an insurance policy to protect my repayments. I thought they were not allowed to do this now?

Banks and lenders are not permitted to sell any other product alongside the main product, e.g. if you are applying for a loan, then this is the only thing that can be sold to you at that time.


Can the bank insist you take out an insurance policy of this kind? They can BUT, it does not have to be their own product. This has always been the case and is one reason why the Financial Ombudsman states that PPI has been mis-sold to many people.

Can a current product I pay for be enough?Yes, in theory, it can be but, you will need to check the terms and conditions carefully. In some cases, the bank may ask to see a copy of the agreement to check that the policy is broad enough to cover various circumstances.

What about work-related benefit packages?Yes, it is worth checking these too as many people have a variety of benefits with their employer that means they have generous sick pay packages for several months.

** Take care with the word 'advised'!

In terms of financial sales, the terms 'advised' means that the bank is telling you that a product is right for you. In some mis-selling cases, many customers felt that their bank was telling them PPI was the right product for them.

In some cases, the bank refutes this, saying they were merely showing the policy or products to the customer and they were left to make their own decision.

The Financial Ombudsman has not always agreed with the bank and felt that some of these conversations were the bank representative advising the customer that the product was right, and to buy it.

From now on, to ensure that this confusion does not arise when a bank, lender or other institution is advising you to buy a financial product they must tell in writing, why this product is right for you. This letter must clearly set out the reasons for you to buy the product, and with of your circumstances it fits**

Don't let the opportunity to claim back your PPI compensation pass you by - contact Scottish PPI Claims for their advice and help to claim.