Over the past decade, millions of customers have been wrongly sold PPI policies. An insurance product which is designed to protect customers from the problems caused by missing repayments. The way in which it was sold has caused the biggest financial scandal in UK banking history.
If you have taken any form of credit or loan since 2001 then you may have been mis-sold PPI. It is vital that you understand the situation surrounding PPI and the claims management process and check your eligibility for a compensation claim.
PPI is an insurance policy known as Payment Protection Insurance. It is designed to cover repayments on loans and other financial agreements if you are unable to do so – such as if you become unemployed or are out of work due to sickness or injury.
Whilst the product itself is not necessarily bad, the way in which it was sold was often unethical with millions of customers cheated out of their money.
What are the problems with PPI?
- Not all PPI policies match the length of the loan agreement, limiting the cover provided
- PPI policies have a number of exclusions and often don’t cover those who are self-employed, working in high-risk industries or those who were unemployed when they took the loan
- Any lapsed repayments caused by pre-existing health conditions may not be covered
- PPI appears under many names (such as ‘credit insurance’, ‘loan repayment insurance’ or something similar), making it hard to know whether you have purchased it
- Many customers had the policy added to their loan agreements without their knowledge
- Some customers were told the policy was compulsory or were not advised that they could obtain it separately to the loan
- Customers were misinformed over what the policy covered or sold the insurance even though they were not eligible
- Customers were wrongly told they couldn’t obtain the loan without the insurance
PPI reclaims can be handled independently but many individuals choose to use a claims management firm, such as iSmart.
iSmart check for free if you have had PPI added to any of your accounts. Follow this link for further details on our Free Check process