The Payment Protection Insurance policy was sold to several millions of people around the UK. This is typically a kind of insurance that is designed for consumers to assist them on covering payments on financial products such as credit cards, mortgages, or loans if the individual will fall ill or will be unable to work and continue on making payments.
What went wrong? Here are must-know facts about PPI and why it was mis-sold.
1. It Can Be Useful
This is a useful product that can provide essential protection to the consumer and this can be valued very much on what it can offer. However, majority of the banks in the UK has mis-sold the PPI insurance on an epic scale and it was mis-sold even as far back as the 1980s! Millions of consumers were sold PPI without the bank fully explaining to them what they would pay for, banks were adding them to the account of people without asking them prior to purchasing the policy. There were even cases where it was sold to people who are unemployed, under government finance rules or even students who were not eligible for this type of insurance coverage.
2. It Goes By Several Names
PPI was also known through several other names. These are: Credit Card Repayment Protection (CCRP), Sickness and Unemployment cover, Mortgage Payment Protection Insurance (MPPI), and lastly, Sickness and Unemployment and Accident cover.
3. PPI Claim Deadline
There is already a deadline announced. Anyone wanting to file a PPI claim will need to file the request by June 2019. If you make a claim after June 2019, you will not be able to receive any compensation.
4. PPI Has Been Around Since the 80’s
PPIs became majorly sold in the 1990s but there are some PPI policies that even date back to the 80s. All banks and lenders are only required to have records of the customerâ€™s accounts to a period of six years of when the account was opened or last active. If you believe that you have a claim further back, you will need supporting documents and other paperwork when you file a claim.
5. Check Your PPI Claim
You can check if you do have a PPI. There is a huge possibility that you were mis-sold PPI. Know your financial history or check your credit score so that you will know which financial product has a PPI attached to it. This is important if you donâ€™t have or lost the paperwork or documents to your loan or credit card. The scenarios where youâ€™re likely to be mis-sold PPI are:
- you were self-employed at the point of sale
- you had pre-existing health conditions at the time you took out the financial product that makes you ineligible for the PPI policy. The seller should have double-checked with you first.
- you were too young or too old during the time you took out the loan or financial product. If you were below 18 years old or over 60 years old at the time, youâ€™re automatically ineligible and if you have PPI, itâ€™s possibly mis-sold to you.
- you were unaware you were sold PPI or the seller didnâ€™t explain it to you properly. Some sellers say that itâ€™s mandatory to get the PPI so that you can secure the loan. This isnâ€™t true since PPI is an optional product. If you were forced or you were unaware the box was ticked off, this is another ground for PPI claim.
Consider of your position when you took out the loan or availed of a financial product. Think of the mortgages, credit cards and loans you still have or you took out years back as it is your right to claim back the money. It is recommended to use the services of a PPI claim company to make the process easier for you.
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