What is Mis-Sold Payment Protection Insurance?

Mis-Sold PPI has led to hundreds of thousands of successful PPI claims in recent years, but what exactly constitutes “mis-selling” of PPI? It is basically when you are sold a payment protection insurance policy either under false pretences, or even sold a policy where you may not have been able to claim should you need to.

There are a number of ways a payment protection policy can be mis-sold, and a summary of each is below. If any of these mis-selling tactics seem familiar to you, get in touch with Precision Claims today on 0844 704 1945 or fill in our online form.

Common Examples of Mis-Sold PPI

• Not Understanding The Terms – it is the responsibility of the company selling you the policy to make sure that you understand fully the terms and conditions, what the policy is actually for and whether you needed the policy in the first place.
   
• Being Told It Was Compulsory - if you were told at the point of sale that you had to take the policy as part of the package. It is not compulsory, and never has been.
   
• Not Having a Full Time Job - If you are a student, retired, self-employed or already unemployed, then you would not have been able to claim for help on the policy if needed to claim due to unemployment, and therefore you were not eligible at time of sale.
   
• Having Certain Medical Conditions That Make You Exempt - Some pre-existing medical conditions can make you ineligible for PPI as most policies have exemptions for certain conditions, including diabetes, back pain, a heart condition or history of strokes. If you have one of these conditions and still sold the policy, this was mis-selling as you could not use it.
   
• Under False Pretences - There are many scenarios where PPI has been sold under false pretences. Some ways people have been tricked into purchasing a policy are as follows:
  
    - You were told that if you took out payment protection insurance, you would have more chance of getting the loan
  
    - You were led to believe that you could only take out the payment protection insurance at the beginning, and not told that you could buy it at any time in the future or that you could take it out from a different company
  
    -You were given the full monthly price of a loan including the payment protection, without being told this.
   
• Having to Opt OUT of the Policy (online) - If you were applying online, and the tick box for including PPI was already checked, then you could be eligible to claim as you would have had to decide against the policy, rather than choosing it.
   
• You were already covered elsewhere - Another way of mis-selling is if you simply did not need the policy. If you were taking out a credit card, but had very good sick pay benefits at work or some other insurance policy covered the loan anyway you could have been mis-sold the policy if you weren’t asked about this.
   
• Paying Up Front - If you paid up front for the policy on a loan, but were not told that you could pay monthly you could also be eligible to make a claim. This is because by paying up front the policy gets added onto the loan, meaning you would have been paying interest on it for the duration of the loan.

Contact Precision Claims

If you have experienced any of the above instances of mis-sold PPI, you may be able to make a claim. Give us a call today on 0844 704 1945 and we can talk through your situation and let you know if you do have a case. Alternatively, fill on our contact form and we will get back to you.