Payment Protection Insurance

Why is PPI often mis-sold?

Payment Protection Insurance is sold alongside credit agreements with the intention of protecting the employee. However, the FSA has found that PPI is often mis-sold, with the client paying for a policy which they will never be able to claim on.

There are four main categories of claim exemption:

1. Medically Exempt. All those with pre-existing conditions will find it nearly impossible to claim. Anyone with a history of heart complaints, high blood pressure, asthma, diabetes, high cholesterol, back complaints or even migraine may have their claim refused.
2. Income Exempt. All those with irregular, insubstantial or variable sources of income will also see their claims rejected. These include students, contract workers, the self-employed, housewives, retired, company directors and part-time workers.
3. Existing Cover Exempt. Anyone who receives full sick pay when they are absent from work will see their claim refused. These include all public sector workers, nurses, doctors, policemen and women, those in the armed services, government or local authority employees. It also includes anyone who has alternative accident, sickness and redundancy cover either through their job or through an existing policy.
4. Mis-selling Exempt. This includes individuals who have been not been given all the facts or given misleading information to coerce or force them in to purchasing a policy. This would cover all those who had been told they could not take out a loan without taking PPI; those who had not even been told they had taken PPI; those who had not been informed that they would pay interest on the PPI; those who had not been informed that the PPI cover only lasted for 60 months; those who were never told that they could purchase cheaper cover elsewhere.

Although these are the four main categories, if any of the following apply, it is likely you were mis-sold Payment Protection Insurance and can make a claim:-

• You were not told that the Payment Protection Insurance was optional and it was indicated that the PPI was a compulsory part of the loan
• You were led to believe that your application for credit would be rejected if you did not take out the insurance.
• The policy exclusions were not explained to you either before, or at the time, you took out the insurance.
• You were suffering from a medical condition at the time you took out the policy and were not made aware of the specific exclusion which relates to pre-existing medical conditions.
• You were self employed / unemployed / in temporary employment / on a fixed term contract/retired at the time you took out the policy, and were not made aware of the specific exclusions relating to unemployment cover
• You were over the maximum age covered by the payment protection plan
• It was not explained to you that the policy premium would be paid upfront as a single premium and would be added to your debt and attract interest.
• The expiration date of the policy was not made clear to you when you were sold the Payment Protection Insurance

If you believe that any of the above applies to your circumstances, we can help you make a claim.

If you think you may have been mis-sold Payment Protection Insurance, you may be entitled to a refund of any premiums paid plus interest and statutory compensation. Your PPI Expert can help you make a claim today. Call 0808 20 20 222 for the best advice on how to start your reclaim process.