There are many cases of PPI being sold incorrectly. People were sold Payment Protection Insurance when they didn’t need it, want it, or even know that they had it. However times have changed and banks are being held to account for the way in which they have sold PPI. Millions have been set aside for banks to repay this money, and many customers are claiming the money they have paid out back again, along with interest. Because of this, banks and other financial institutions can no longer sell PPI in the way that they used to. They have retrained staff and now you should no longer be mis sold PPI. The banks have done this in response to the millions of pounds that they have paid out.
If you were sold PPI wrongly, then you have a claim. Staff received bonuses and banks made a lot of money from selling PPI. It was a very big earner and they were consequently very eager to sell it, which is why so many people have it. PPI itself is not a bad product, as it can cover you for loss of earnings if you have loan repayments. However it needs to be sold correctly and it should be properly explained to the customer.
First of all, you should not be sold PPI if you are self employed. Payment Protection Insurance will not pay out in a case like this and no bank should sell it to anyone in this category. If you are retired, payment protection will be useless to you and again you should not be sold it. Any person selling it to you must check this out before you are even offered PPI or any form of payment protection. If you have a medical condition then PPI is useless as the company will not pay out so the sales advisor should also check this before selling it to you.
It should also be carefully explained to you before you take up this type of insurance. Sometimes people were told that it was compulsory to have this insurance and it was a condition of the loan. They then took it out so that they could have the loan. This was not correct and PPI was not necessary; people were paying out when they did not need it for the loan. The sales person should also have made it clear that the PPI could have been bought from elsewhere if it could be found for less money. If this was not explained properly then the insurance was mis sold and the company would be liable for repayment including interest.
A good sales person should also check that you are not already covered elsewhere for loan repayment if you cannot work. Some people are covered through their employment and should not be sold PPI because they do not need it. The sales process should be thorough and check out that you are employed and the type of employment you have. It should be a clear and open process. If it is not, you are entitled to reclaim PPI.