If you were sold a payment protection insurance policy with a loan you may be worried about working out whether or not this policy is one that falls under the ‘mis sold’ category however this is a relatively easy thing to do and we can assist you. Simply take a look at all of the ways in which a PPI policy was mis sold below, if you feel like you identify with one or more of these then you are likely to be a victim of the mis selling scandal and should be able to progress with the PPI claims process and get a PPI refund as well as compensation.
Here are the ways in which payment protection insurance was mis sold making you eligible for a PPI claim:
You did not meet the strict employment criteria, all policy holders should be employed, work full time and contracted permanently with no expectations that they would potentially lose their job in the near future. Those who were working on a temporary contract, part time or those who were students, unemployed or retired would not have been eligible for the cover provided by payment protection insurance and therefore should not have been sold the policy. Self employed workers also were not eligible for the cover regardless of how many hours they may have worked. If there have been changes in your employment status despite being eligible at the time the policy was sold you could still make a PPI claim and this should be discussed with PPI Claims Management.
You had a pre existing health condition and this was once which was expected to deteriorate and cause you to no longer be able to work. When the policy was sold the sales person was required to check such issues and ensure that the customer was fully aware of the fact they would not have been covered by the PPI.
You were not told that PPI would not cover loss of income through certain health conditions. These health conditions include an array of backache issues, muscular problems and mental health issues which cover stress and depression. Not being informed about such issues leads to the bank not fulfilling their duty of care.
You were not within the strict age limit when you were sold the policy. As PPI was income protection for those who lost their jobs or had an illness it is important that the policy holders fell within the strict age limits set by the policy. The minimum age of a policy holder is 18 and the maximum is typically between 65 and 70 depending on the bank. Being outside of this age range when the policy was sold or during the time the policy was going to be active would result in the policy being mis sold.
You did not know you were even sold the payment protection insurance policy. PPI policies were often added to loans and credit cards without informing the customers and this was by adding the cost of the policy in with the loan repayments and showing the customer one monthly sum which was generally referred to as “fully protected” without any explanation of what the term “fully protected” actually meant.
You were not told that the policy was actually optional. Many banks forced the customers into taking out the policy and implied that it was a condition of their loan, leading many to believe that they would not have been accepted for the loan if they did not take out the policy alongside it. This was highly unethical and any policies sold in this way were mis sold and a PPI claim can be made.
You already had an existing policy with another bank. The bank should have asked you if you held any related payment protection insurance policies with another bank or lender as chances are this would have also covered the new loan you were taking out.
You were not advised to shop elsewhere. Part of the bank’s duty of care is to ensure that their customers are making informed decisions with the products that they were taking out. This means that customers should have been told that it was possible for them to buy the payment protection insurance policy from another provider and they should compare the prices of the same policy elsewhere.
You applied online. Not all online applications for loans came with a mis sold payment protection insurance policy attached but the standard application form for many websites automatically included the customer accepting they wanted payment protection insurance added to their loan. This results in the PPI policy being mis sold in two ways, the customer was not aware and the bank did not ensure that the customer was able to meet the criteria for the loan nor did they check that they fully understood all of the terms and conditions of the policies.