There has been a lot of confusion about the mis-sold PPI hype. This story has been all over the media and people may have been misled into believing that all PPI which was sold has been mis-sold. It is time to try to clear up some of the misunderstandings which are around and explain clearly what is meant by mis-sold PPI.
Firstly, PPI in itself is not a bad product and many people have used it and found it extremely useful. It is meant to cover you if you cannot repay a loan or make your mortgage or credit card payments. It is payment protection insurance and that is what it does, it protects the payments you may not be able to make if you have an income crisis. People who have unexpectedly been made redundant or become ill and unable to work have found it invaluable.
The problem arises when people who tried to claim on their PPI discovered that they couldn’t get the insurance they had paid for. More and more problems were found with the product. Many people, because of their health or personal circumstances, couldn’t claim PPI, and others didn’t need it because they were paying for cover elsewhere. People were told that they had to take out PPI to receive the loan when this wasn’t correct. Even worse, some people were given PPI without their knowledge or consent. In all these cases, they were mis-sold PPI.
So, to keep it simple, if you were unemployed, self-employed or retired when you took out PPI you were probably mis-sold. If you had a health condition and you weren’t told that this would not be covered, you were probably mis-sold PPI. If you were not told about the PPI or were told that it was compulsory, it was probably mis-sold. If it was not explained that you could get cover elsewhere then again it was probably mis-sold. These are the main bases for reclaiming your PPI.
If you fall into any of these categories you should certainly be applying for a refund. You can claim back both the PPI payments you have made and interest on these payments. If the loan has been repaid or you no longer have the relevant credit card, you are still entitled to a refund as many of the mis-sold PPI s go back up to ten years. If you were mis-sold this product you are entitled to a repayment no matter how long ago it was.
Simply put, many people were mis-sold PPI because they did not understand the product they were buying. It was the duty of the finance company to explain what you were buying and make sure that it was a suitable product for your needs. If this was not done correctly, the bank or other financial institution is liable for repayment. Millions of people spent millions of pounds on PPI and are entitled to claim it back, so check that you are not one of them.