FAQ: Payment Protection Insurance FAQ's
Mis-sold Mortgage Payment Protection Insurance
Mis-sold PPI is most commonly associated with financial products such as loans and credit cards but these were not the only agreements to be affected by the situation. In fact, any type of money lending or credit agreement could have seen individuals falsely given PPI cover, meaning they are entitled to claim.
This means that even agreements such as those for mortgages could have been affected by mis-sold PPI. The length of mortgage agreements can span over a decade, meaning that some individuals could still be paying for an agreement which had payment protection insurance incorrectly added to it.
Determining whether you are eligible for a payment protection insurance claim is therefore a vital step for anyone who received some form of credit over the last ten years.
Despite this large number of claims which have been lodged since the situation concerning mis-sold PPI was exposed, there are still many people who have failed to lodge their complaints.
The Financial Ombudsman Service (FOS), one of the bodies who handle these claims, expects to receive 285,000 new cases for mis-sold PPI over the coming year – demonstrating how the situation is far from resolved.
Those who feel that they may have been mis-sold PPI can consult a professional claim firm or agency to review their situation. In order to lodge your complaint you will be required to provide the information relating to your financial product – such as your agreement number.
Of course, it should be remembered that payment protection insurance is not an inherently negative product and, when provided under the right circumstances, can be a highly useful form of protection.
Payment protection insurance is designed to cover the repayment of loans, mortgages and other agreements in the event that the borrower is unable to.
Whilst the product is a legitimate form of insurance, the way in which it was sold to a number of people over recent years was either unethical or incorrect.
Some applicants for loans were under the impression that payment protection insurance was part of the loan itself whilst others were led to believe it would improve their chance of obtaining credit.
Some individuals were even given the policy despite the fact they did not qualify for it. This was equally true for those taking out mortgage payment protection insurance as well as the standard policies sold with loans and credit cards.
This saw people who were out of work, retired or in full-time study at the time of their application, for example, offered the insurance. If they had tried to make a claim on their policy then they would have been unable to do so – meaning they were paying for a service they were unable to use.
Establishing whether you were mis-sold PPI on your mortgage or other lending agreement is essential.
The amount you are entitled to will depend on how long you paid the insurance for and the amount you paid in total.