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Scotland Wide PPI Specialists

Facts About PPI you Need to Know

23 May 2016

If you are making a claim for a payment protection insurance policy (PPI) that you believe was mis-sold to you, there are a few things you need to know…

PPI compensation is NOT automatic

Some people have a hard time understanding why, if banks and lenders knew that they mis-sold PPI to thousands of their customers, that they cannot simply refund these customers.

Even though it may be the case that the vast majority of PPI policies were mis-sold to customers, some may not have been and thus, following the consumer law relating to financial products, the customer need to prove that they were mis-sold the policy.

If you were mis-sold PPI, you are entitled to all your money back, plus 8% interest in some cases, as well as any costs and fees

Not so long ago, there was a case in which a customer won all their money back but because the policy had been very expensive, it had at times, pushed his account over the agreed credit limit. This incurred a charge.

It happened more than once. So much so that these costs were significant - over the years, he had paid thousands of pounds in fees and charges. He fought for these to also be reimbursed as his argument was that if he had not had PPI on the account, he would not have had to pay these charges.

The Financial Ombudsman agreed and he won these costs too. Interest is charged at 8% too as if you had not been paying these PPI premiums, you would have had this money to spend or invest.

The majority of claim are found in favour of the customer

Whilst there are no guarantees, the likelihood is that your claim for compensation will be successful.

This is because there are a large number of reasons why you may have been mis-sold the policy. Here are two reasons:

  • The impression you had to buy it in order to have the loan - when you apply for a loan, the bank or lender can insist you have some kind of insurance policy to cover the debt but you do not have to buy their own product
  • Your application was more likely to be accepted if you bought the PPI policy - whether or not you bought PPI should have had no bearing on your application. In fact, applications for loans are assessed on a number of factors, including your credit score.

There are many other reasons why you may have been mis-sold PPI and we can help you make a claim - contact Scottish PPI Claims now to find how we can help!