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Scotland Wide PPI Specialists

Is PPI Still Being Sold?

19 January 2015

As you sit and wonder if you are entitled to claim payment protection insurance (PPI), you may be shocked to know that PPI is a policy that is still available to buy! But why?

The policy may not be the problem…

Payment protection insurance (PPI) is a policy that is part of the income protection family of insurance policies. The idea behind PPI is simple:

Should you be unable to make repayments on a loan or credit card, for example, this policy should cover the repayments as a result.

This operates like other insurance, in exchange for a premium which is paid monthly, the cover is applied.

The way it was sold

The issue with PPI is the way in which it was sold to customers:

  • Banks and lenders saw an opportunity to make money from the policy hence, the premiums were often inflated to a far higher price than would normally be charged for this simply policy
  • Like other insurance policies, the more you want the policy to cover, the larger the premium will be; however, the inflated price-tag on the PPI policies sold by banks meant that some people may have been mistaken in to thinking that the policy they had just bought was offering them a high standard of cover
  • Many banks and lenders gave the impression that the purchase of PPI was compulsory; there is no law that stipulates customers must buy insurance to cover the repayments on any kind of loan, credit card or other financial products. This is not the case and the new ruling is that all financial institutions must give consumers at least 7 days between the sale of the main financial product and any 'extras'
  • Customers were also not told of the rather narrow set of terms and conditions that applied as part of the PPI policies; for example, some health issues were not covered. Other people also thought that their pre-existing medical conditions were also covered but this wasn't the case. In other words, people were not given the full facts on which they could base their decision.

Make sure you have claim!

We always say to customers who get in contact with us, either by calling or emailing us, to check - and check again! - to make sure that they are not missing out of making a claim for PPI compensation.

There were only a small proportion of people that were eligible to make a claim on the policy; in fact, it has since been proven that only 15% of people who made a claim would have had a successful claim.

Compared to car insurance - which has a pay-out rate of 85% or more - this is incredibly low.

If you think you have a claim or would like help in finding out, then contact Scottish PPI Claims!