There has been a lot in the press and other media about mis-sold PPI. The High Street Banks have lost a landmark court case when they appealed against having to repay PPI when they had sold it wrongly, and are not going to challenge this ruling. Consequently the door is open to reclaim PPI which was mis-sold. However this is a complicated area, full of confusion. It is perhaps time to take a look at the problem and try to simplify the details.
Firstly, what is PPI? PPI stands for payment protection insurance. If you take out a loan or a credit card, you can also take out payment protection insurance so that if you lose your income for example through illness or redundancy, your payments will be covered. It may also be known as accident, sickness and unemployment cover or loan protection insurance.
This seems like a good idea, and many people have taken it out. The product itself is not a bad product. The problem comes when it has been mis-sold.
So, what does mis-sold mean? If PPI was sold to someone who did not want it nor need it, then it was mis-sold. The best way to illustrate this is to give examples. If you are paying PPI and did not know you have it, then it was mis-sold. If you were told you must have PPI or you would not get your loan, you were mis-sold. These are two blatant examples of mis-selling.
Some people were sold PPI when they would have had no chance of making a claim. If you are self employed and have PPI, it is useless as if you lose your income you will not get your repayments covered. Similarly if you are over sixty-five you are ineligible. You would be making your payments with no hope of a return. Also if you have a pre-existing medical condition, such as a back problem, PPI will not pay out. If you were sold PPI under these circumstances, then it was mis-sold.
These are all clear cut cases. They are not the only examples where you may have a claim. If you already have cover through work or another insurance policy, then this should have been made clear to you. If your partner was covered through another policy, this too means that you did not need PPI.
So, after checking carefully, you find that you have PPI and fall into one of these categories. What are the next steps? You must make a claim quickly. At the moment the banks have money set aside to pay these claims, so you need to make a PPI reclaim as soon as possible.