FAQ: Payment Protection Insurance FAQ's
Payment Protection Insurance Consumers Most At Risk
With more than 1.5million complaints for PPI being made since 2005, a vast number of people have discovered that they were mis-sold PPI. The mis-selling of this product could have affected anyone who obtained a loan, mortgage, credit card or other form of credit agreement over the past decade but there are certain consumers who are more at risk.
When the policy was given to individuals it was often done so without their knowledge or after they had received misleading information. In many cases this led to people paying for the product even though they would have been unable to claim on it in the event they couldn’t meet their repayments.
This is because PPI is designed to cover the repayments if the borrower finds they are unable pay due to unemployment or illness. It is estimated that a large number of those who received the insurance were not eligible for it – and these are the consumers who are most at risk.
People who would not have been eligible for PPI protection include:
- Those who were unemployed at the time when they took out their loan or credit agreement.
- Those who were employed in high risk or dangerous professions.
- Those who had a pre-existing health condition that would have increased their chances of being unable to meet repayments due to illness.
Consumers who took more than one type of these products will also be at a greater risk of having been mis-sold PPI. This is because the policy could have been added onto any number of these – meaning that the more policies you obtained the greater the chance that you were mis-sold PPI.
Establishing whether you are entitled to claim
Whether you are a high risk candidate or not, checking your eligibility for a PPI claim can be done by consulting the credit agreements which you took for different products and looking for any PPI that was added.
If you were unaware this was here, were misled about what it offered or would not have been eligible for it at the time you purchased it then you are entitled to lodge a claim.
One way to do this is to contact a dedicated PPI claim firm or, alternatively, you can choose to handle your claim yourself. Where a claims management company is instructed, such as iSmart, it will lodge your complaint with the lender who will either accept or reject it.
Where a legitimate claim has been made but has been rejected by the lender, it will then be referred to the Financial Ombudsman Service (FOS) – an independent body. .
This process naturally takes longer if the FOS is involved but in some cases it could be well worth the additional wait.