Payment Protection Insurance (PPI) has been heavily mis-sold over the past decade by ruthless financial institutions intent on boosting profits. In many cases customers were told that they couldn’t get a loan if they didn’t take out this additional costly insurance.
What Lenders Never Told The Customer About Redundancy Insurance
It is a fair assumption that few advisors will have told customers that Payment Protection Insurance (PPI) can be purchased separately to the loan product for cheaper. The majority also didn’t tell customers that it is a short-term insurance only – 12 to 24 months.
Examples of Mis-Sold PPI or Loan Insurance
- Pressured into buying PPI by a member of a sales team.
- Informed that PPI would improve the chance of getting a loan.
- The overall cost of the PPI was not explained or illustrated properly.
- Not being informed that PPI was included in the monthly cost of the loan.
- The small print of the contract was not fully explained.
- Loan insurance was sold where the T&C’s specifically exclude a customer from ever benefiting. For example, a 75 year old customer was sold PPI when the maximum age of acceptance was 65.
Not Examples of Payment Protection Insurance (PPI)
Don’t confuse Payment Protection Insurance (PPI) with level term life insurance, critical illness insurance or mortgage protection life cover. These cannot be claimed for.
No Win – No Fee PPI Help
Due to the scale of Payment Protection Insurance (PPI) mis-selling, a number of private companies are offering to take cases on a no win – no fee basis. This means that no costs are incurred regardless of the outcome of the case. If the case is successful the fee is usually about 25% of the settlement figure.
What if I Have Already Settled the Loan?
If the loan was taken out within the last 6 years a PPI claim can still be registered. It may also be possible if the paperwork can be found because it has been personally saved.
What Happen If In An IVA Or Debt Management Plan?
The claim won’t be negatively affected if in an IVA or Debt Management Plan. However, any settlement gained will most likely form part of the debt agreement if in an IVA. It is worth submitting a claim if in a Debt Management Plan as the debt is discounted.
Will Credit Ratings be Affected?
A credit rating cannot be adversely affected by a PPI claim. It is quite common for the entire loan to be written off and the entry wiped off a credit file. If the loan was never legal, it constitutes an unenforceable loan agreement.
Don’t delay any longer in submitting a Payment Protection Insurance (PPI) claim. The banks have misled customers and there has never been a better time to claim any money back. If the debt has been incorrectly calculated there is a strong chance that it will be written off entirely.