Have you been mis-sold payment protection insurance?

An Advertising Feature

If you have taken out a loan, credit card or mortgage in the last ten years it is very likely you were offered some kind of payment protection cover. Payment protection insurance, often known as loan insurance or simply PPI, is a type of insurance designed to cover debt repayments if you cannot work because of sickness, accident or involuntary unemployment.

In 2006 an investigation by the Financial Services Authority revealed the insurance had been widely mis-sold. As a result, some lenders were fined and many unhappy customers began to make payment protection insurance claims. There are several ways in which you may have been mis sold ppi and a number of different grounds upon which you could make ppi claims, some examples are below.

Were you given the wrong information? Sometimes, because of a lack of training or just to boost Sales, customers were given the wrong information about their payment protection policy. A good example here is customers who were led to believe they had to have PPI. PPI has never been compulsory and if you were told it was you were given the wrong information and could be entitled to make a PPI reclaim.  Other examples include: being told taking out PPI would guarantee or improve your chance of being given the loan or credit card – again, this is, quite simply, not true and you may be able to make a claim for compensation.

You may also be entitled to make a claim if you weren’t given full information regarding your policy. In order to decide whether you wanted the cover and whether it was right for you, your lender should have given you full information regarding the terms and conditions of the policy as well as the costs. If you do not feel you received all this information your policy may have been mis-sold.

If you were sold a policy that you didn’t want or need this may also be considered mis-selling. For example, if you were over the age of sixty-five when you bought the cover it should probably not have been offered to you as most policies do not cover customers above this age. Similarly if you were retired, unemployed or in full-time education – PPI covers for loss of employment – if you didn’t have a job you probably didn’t need it!

In some cases PPI was even added without the customer’s knowledge so it is worth checking your loan and credit card documents carefully to make sure it wasn’t added without your consent!

The good news is, if you were given the wrong information regarding your payment protection insurance policy; were sold cover you didn’t need or couldn’t use; or had a policy added without your knowledge you have the right to make a claim. Thousands of victims of mis-selling have already made a PPI reclaim and received compensation.

The amount of compensation you could receive will depend on a number of different factors including the type of PPI – whether it was applied to a loan, mortgage or credit card – and how long you have had the policy for. Where mis-selling is proven, though, you could normally expect to receive a full refund of premiums paid plus 8% interest.

Many people also do not realise they have the right to claim back bank charges unfairly applied to their credit cards. In 2006 the Office of Fair trading investigated charges applied for late payments and over the limit fees and found many of these were unfair. As a result of the investigation, most banks have reduced their fees and, if you have paid unfair late fees or over the limit charges in the past, you can now start claiming back bank charges..

If you think you have been mis-sold payment protection insurance or paid unfair credit card charges, you have the right to make a claim. It will not affect your credit rating or your relationship with your bank and you really could be owed hundreds or even thousands of pounds! If you would like to know more contact The PPI Claim Company on 0207 471 2000 and discuss your options with a qualified advisor.