1) What is payment protection insurance?
This is also known as PPI, PPI insurance or loan protection. Payment protection insurance is an insurance policy taken out in case you get sick, have an accident, lose your job or get made redundant. In certain circumstances, the insurance will pay your monthly repayments for a certain period of time, usually 12 months.
2) How did it get mis sold?
Quite simply, because of greed and statistics. There was a large amount of commission attached to each sale of payment protection insurance. This was because the policies were very profitable for the financial industry as they rarely had to pay out. So organisations had targets set around selling these policies and sales assistants got large commission payments for doing so. These common mis selling practice has resulted in massive amounts of PPI compensation claims.
3) Is it just brokers that mis sold?
No. Most lenders are guilty of mis selling millions of pounds worth. Your favourite high street bank or building society is probably guilty of mis selling to customers!
4) How do I know if I can make PPI Refund Claim?
There are lots of reasons you can have a valid claim. This is not an exhaustive list but covers the most popular reasons:
• Did you know you even had a policy? Sometimes policies were added without your knowledge.
• Were you told you had to take out PPI to get the loan accepted? This is not an acceptable sales tactic and a common reason why banks have to pay out PPI claims.
• Were you unemployed or self-employed? Or part time, or temporary? Most PPI policies would not have covered you.
• Were you asked if you already had PPI with another product? Some customers had existing policies so did not need to take out another policy.
• Were you told you could find your own PPI policy? You should have had the option to shop around for a cheaper policy.
• Were the terms and conditions explained to you? Did you understand what it covered, when you could claim, how long it paid out for, what it excluded, what it included etc..
• Did you say no to the policy? Aggressive tactics made have been employed to persuade you to take out these policies. This sales technique would be a reason for you to put in for a PPI compensation claim.
5) How do I prove my PPI Compensation Claim?
Put forward your case to the bank or financial organisation and explain why you feel it was mis sold. The forms you complete will allow you to state why you would like to get a PPI Refund.
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Nik Jones is a professional PPI Advisor at PPI Refund. For any type of PPI refund or PPI claims, call for free on 0800 044 5196.
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