This morning I was driving to work and I was listening to the local radio station with half an ear it has to be said. Then I heard an advert to do with mis-sold PPI and the average repayment being £4000. I then remembered the unsolicited texts I had received to do with this and the emails dropping into my inbox. I realised that I was extremely ignorant about PPI and why people should be making claims. Also, I was put off because there is so much financial jargon, the whole thing needs to be simplified. After all, it is ordinary members of the public who have been caught up in this, not financial experts.
So let’s go through the jargon and simplify things.
Payment Protection Insurance are the magic words. The original idea is sound but it has been exploited by too many financial institutions.
What does this mean?
It was to help people who had taken out loans or financial packages and who might be unable to make the repayments.
What kinds of loans are covered?
Mortgages, store cards, credit cards, personal loans – just about any kind of repayment transaction are covered.
What was covered?
If you failed to make repayments because you were ill, had been injured or had been made redundant then the insurance cover would make the payments.
Why is there all the fuss?
Put quite simply millions of customers took out this insurance when it was totally inappropriate for them. So they were paying for something they did not need.
Who might have been caught out?
People who are self-employed, retired or unemployed are not covered by the Insurance.
I am not in the above categories; might I still have a claim?
This may be the case if you were not informed that you were signing up for PPI or were informed that you needed to have PPI to ensure that a loan offer was made. Also, you may not have been made aware that you could shop around to arrange your own cover at a cheaper price.
What if I had a pre-existing medical condition?
If you had an existing condition which then flared up and caused you to be off work then you would not have been covered.
Does the loan or financial agreement need to be current?
No, claims can be made for loans which have been repaid or cards which are no longer in use.
Do I need to have all my paperwork?
No all you need is a reference number.
Will I have to do all the work myself?
No there are firms who will do all the hard work for you and they will only charge you one a settlement has been reached.
Next time I hear an advert or read an article about PPI I will be clearer, I hope you will be too and this will help you make up your mind about finding out if you have a claim.