Mis-sold PPI has been the centre of a lot of negative media coverage over recent years. The widespread mis-selling of the payment protection insurance policies has led thousands of people to reclaim PPI. But with all the confusion surrounding the policies, how do you even know if yours was mis-sold?
Well, there are three main categories of mis-selling, but these are by no means exhaustive. Perhaps the simplest one to interpret is that of whether you were sold the product without knowing it. Believe it or not, this has happened! Because PPI is sold alongside loans and mortgages (as well as other hire purchase agreements and credit cards) the figures can be confusing when you’re applying. For example, you might have been quoted a monthly repayment cost for a “fully protected loan,” which incorporates a monthly PPI cost. However, if the lender did not make clear that this was an additional payment at the time of the application and as such, you were not aware that you even had the policy then your PPI was mis-sold.
Sometimes it looks as though PPI is a mandatory part of a credit agreement, and the person selling the policy doesn’t say differently. This is mis selling by misleading. There are also times where it is made out that taking out PPI will make you more likely to get a positive decision on your credit, which is of course not true.
There are some people who are not eligible to claim on a PPI policy yet are still sold them anyway.. Such people include the unemployed, self employed or those with a medical condition and this essentially means people have taken out a policy they will never be able to claim on, wasting money.
These examples are far from exhaustive and if in any doubt at all as to whether or not your PPI policy may have been mis-sold, seek professional advice.
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