What is PPI?
PPI (payment protection insurance) or ASU (accident sickness unemployment) or Loan repayment protector is a type of insurance that has been selling alongside loans, mortgages & credit cards. Over the years millions of these policies have been sold which are supposed to cover your monthly repayments in case you become sick or unemployed through redundancy. The policies typically pay out only for a maximum of 12 months.
Over the years there have been several high profile investigations by the Competition Commission and the FSA (financial services authority) into the selling of this product. They found that not only they are usually expensive and useless but also widely mis-sold. Therefore, many people started to make claims for refund of the insurance either by themselves or through claims management companies.
However, in October 2010 the banks decided to challenge the FSA by going to the High Court in order to stop people reclaiming back the insurance. In April 2011 the lost the court case and since then millions of people have started to make claims for compensation.
Why has PPI been mis-sold?
You may have been told that the compensation was compulsory or that you get a better chance of getting the finance you were applying for if PPI was included. Perhaps your pre existing medical conditions were not discussed. Or if you were unemployed, a student or self-employed when PPI was sold to you, this would likely mean that you had been mis-sold to, as you most probably would not have been able to make a claim under the insurance.
How can I claim PPI back?
You can either make a claim yourself or use a claims management company such as Canary Claims who with their years of experience and expertise can help you through the process of claiming. Claiming is not complicated and if will not affect your relationship with the bank or your credit rating.