Claiming back PPI
There has been so much coverage in the media about the subject of claiming back PPI, but many people are still confused as to what exactly it is, whether they have been sold it and whether they could be entitled to make a claim.
PPI stands for Payment Protection Insurance, an insurance product sold by banks and other lenders alongside loans, mortgages and credit cards. The purpose of the cover is to protect the borrower from financial hardship by insuring their repayments against involuntary unemployment, illness and accident. If you have taken out any form of credit in the last ten years it is very likely you were also offered this cover. It can be known by other names including loan insurance and payment guard while lenders also just refer to a policy as being ‘protected.’
Following an investigation by the Financial Services Authority, it was revealed there were significant failures with the way payment protection insurance was sometimes being sold and that many people had been put at risk of buying an unsuitable policy. As a consequence of these findings, several high street lenders were fined and there was a significant increase in the number of customers claiming back PPI.
There are several ways in which a policy may be mis-sold, but, as a general rule, mis-selling means that a significant failing occurred at the point of sale. In some cases this may mean you were given incomplete or incorrect information or that you were put under undue pressure to take out the cover. It could also mean that your lender failed to fully assess your situation and you were sold a policy you didn’t want or couldn’t use.
If you are interested in claiming back PPI and would like assistance, we could help. To start your claim today complete our quick claim form.