Mis-sold Payment Protection Insurance (PPI)

The recent influx of mis sold Payment Protection Insurance claims have raised questions towards the ethical standing of many of the financial institutions, insurance brokers and lenders.  When the word of UK PPI scandals broke out in the recent years, many borrowers became conscious of the fact that they have been mis sold the UK PPI. As a result, many compensation claims were filed against the responsible authorities such as the banks. In order to have a successful claim it is important to know that how have you been mis sold the insurance policy.

In today’s competitive world almost everyone has taken some sort of loan, sometimes to fulfill the basic and justifiable needs, other times to fulfill their luxurious needs. However, repayment of the loan is one important factor to keep in mind. Failure to make the payments on time can have serious repercussions and so policies like Payment Protection Insurance were made to help the borrowers in repaying their loans.  Basically this policy covers your payments when you are faced with involuntary redundancy, i.e. if you lose your job or sometimes when you are ill, in such a situation it is not possible for the borrower to return the amount in a timely manner.  

The successful completion of the mis sold PPI claims vary from case to case and so it is important to know as to how the policy was sold. There a number of ways to mis sell the policy. Some of which are discussed below:

·         Unaware of the policy being sold: while you take a loan, the insurance policy is added to your contract without you having knowledge of it. If you are unaware of the fact that you have the insurance policy along with the loan, then there is a high probability of being mis sold the policy attached with it. But before making a claim it is prudent to be sure of it, and for that you should first go through the contract papers and try to find out if you have actually been sold the policy. It must be stated somewhere on the papers in case of being sold the policy.  

·         Acquisition of the policy is mandatory: when the brokers emphasize  that you are not entitled to receive a loan just because you are not signing up for the policy or that acquiring the policy might help you in getting greater amount of loans, then it is an indication that you can successfully claim your money back.

·         Other times the brokers’ mis sell the policy by not disclosing full information in front of the customers when it is indeed possible for them to buy it on cheap rates.

Mentioned above are just few ways of mis selling the policy and people faced with such state of affairs are entitled to make PPI claims.