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Scotland Wide PPI Specialists

How Were You Sold PPI?

19 March 2018

So far, billions of pounds have been returned to customers. But with 60% of customers yet to make a claim for PPI compensation and a deadline looming, it is worth taking another looking at the five top reasons why PPI was mis-sold.


If you are thinking of making a claim, you need to make a decision and act quickly because the PPI deadline 2019 will soon be here. Don't miss out on the chance to claim your money back!

1. Self-employed, unemployed or retired

If you did not have a job at the time you were sold PPI, or were self-employed or retired, you probably wouldn't have been covered by the PPI policy.

In the case of those people who were self-employed, you may be surprised to learn that in order to have a sniff at a valid claim under the PPI policy, you would have to cease trading.

Other problems were;

  • customers not asked about their employment status at the time they took out the policy - which constitutes mis-selling too. Anyone selling you a financial product must check that the product is right for you.
  • you may also need to look at the upper age limit of the policy - you may be surprised to learn that you were outside the age bracket that the policy covered.

2. You have a pre-existing medical condition

But were still sold the policy. This is simply because PPI policies offered only basic cover thus, your pre-existing medical condition would not have been covered. Policies that offer this are significantly more expensive as the likelihood of you being economically inactive as a result is higher.

However, even though you may have declared this on other application forms for the loan etc., the bank or lender still sold you the policy, even though they knew the likelihood of you successfully claiming on the policy was 0%.

Again, if you were not asked about your health, then this is a mis-selling reason too.

3. You were advised to buy PPI/ told it was compulsory

It is only really since the PPI mis-selling scandal that people are now aware that when they apply for a loan etc., they do not have to buy any other product alongside it.

Banks may like you to have a PPI type policy, but they cannot make it a condition of sale and you are free to shop around, to purchase a policy that is suitable for you and your budget.

4. You were sold a single premium policy

Up until 2009, many PPI policies were sold as single premium policies meaning you paid for the policy on one lump sum and upfront. Or, as in most cases, the cost of PPI was added to the loan meaning you paid interest on this amount too. This made the cost of the loan far more expensive.

5. You did not know you had PPI!

This is the tough one and the mis-selling reason that causes the most concern because if someone doesn't know they have PPI, how do they know to make a claim?

Our advice is to check every policy and account. And check again.