It is seen on the Television, on the radio and in the papers nowadays about Mis sold PPI and is becoming increasingly popular with more and more people taking action and claiming back money that could be owed to them. So what is PPI and how do you know if you have been a victim of mis selling?
PPI, otherwise known as Payment Protection Insurance is sold to you when taking out a credit agreement such as a loan, mortgage or credit card to cover you should you ever become unemployed, have an accident or any medical reasons to unable you to repay instalments back but in recent days has come to many peoples attention that it is not compulsory to have PPI. You could be paying up to 30% of your loan amount in insurance and you could have in fact been mis sold PPI when taking out the credit agreement in the first place.
If you have a think about when you took out your credit agreement, do any of these few examples sound familiar?
1) At the time of loan agreement, you were told it was compulsory to have insurance.
2) You weren’t informed that the policy was optional.
3) The lender didn’t explain the policy or what it was used for.
4) You felt pressured that you needed the insurance even though you would more than likely never use it.
You may also not even know about PPI and whether you have it or not so to check this have a look at your statements where they should be something stating Payment insurance, Loan insurance, Protection policy or something along these lines. If your still unsure whether you have it may be worth your while giving the original lender a call and asking them to find out. Don’t worry if the lender is now out of business as you still have a claim case and can do this through the financial services compensation scheme (FSCS).
Many claims can be made within the last 10 years of taking out the policy so its worth taking a look into old loans, credit cards or agreements and, if you have it take action to claim back your Mis sold PPI.