Some reasons why PPI may have been wrongly sold to you
1. You were self-employed, unemployed or retired when you got PPI
If you were self-employed when took out a PPI policy or were out of work, you should check whether your policy includes cover for unemployment - most do. If yours does cover one or either of such situations then this part of the insurance policy is effectively worthless - you will be being covered for an eventuality that can never happen.
If the person who sold the PPI didn't check out your employment status when you first took out PPI or it was clear to them that you were either not working or were self-employed and they still sold the product to you anyway, there is a very good chance that there is a case for claiming back the premiums that you have paid.
In addition, many PPI policies have an upper age limit beyond which they would not pay out. If you were too old to make a claim when you first took out the policy you almost certainly have a claim. If you passed the age threshold during the duration of the policy you'll be able to probably reclaim any premiums which you have paid since that date.
2. You have been sold PPI even though you had a pre-existing medical problem
Many insurance policies exclude pre-existing health problems. So when you become ill with a sickness that you've already had before then it is unlikely that the policy will pay out.
If you were not asked about your health at the time you were sold PPI or if you were told that your particular previous health conditions didn't matter, you very well may have a valid claim for mis-selling. Equally if there were exclusions in your fine print which you weren't informed about (or that you were given incorrect information about) you could also claim.
You need to examine the exact provisions of the original PPI policy document that you were given when you took out the payment protection policy
3. You thought PPI was compulsory or that your particular application could be disadvantaged by being without PPI
Some firms mis-sold PPI to consumers on the basis that it was stated that PPI insurance was compulsory when it was not, or they suggested that a loan application was more likely to be refused if there wasn't any PPI cover.
PPI should only be optional and if it wasn’t made clear to you that the ppi policy was optional or if you felt you were coerced into buying the cover or you were told your application for credit couldn't continue if you didn’t take out PPI, these could well be grounds for a legitimate claim.
If after 14 January 2005 you were told it was ‘strongly recommended’ , this is known as an ‘advised sale’. Unless you were issued a ‘demands and needs statement’ that sets out why your specific policy was recommended as suitable for you, you have grounds for complaint.
4. You were sold PPI that didn’t match your circumstances
Till May 2009, most PPI policies were sold as ‘single premium’ cover. This is where the cost of the insurance was added onto the loan terms or finance agreement and you had to pay interest on this as well as the sum you'd borrowed.
Most of these single premium PPI policies were set up to last for a standard 5 years. If the period of your loan was for a different period to the PPI cover then you may be able to claim a refund
If you got a loan in joint names but only one individual is covered in the PPI policy you have, you may also have been mis-sold.
In the event you already had some insurance cover that could cover you for the same eventuality such as an employer’s income protection insurance - and the PPI seller was aware of this prior to deciding to signed up for the cover, you may additionally be able to get a reimbursement.
5. You didn’t know you had PPI
It could be that you just bought payment protection insurance without even realising it. Maybe it was included in the original quote that you were given for the loan without it being explained that it was an extra item or was added on without you knowing it.
Some loan and credit card applications have used pre-ticked boxes that required customers to opt out of having PPI with their loans or credit agreements as opposed to opt in. This is viewed as mis-selling.
If you failed to uncheck the box then you will probably have a legitimate claim.
You Already Had Cover
If you were already protected by some other policy or by your employers provision for unemployment or sickness and you told the member of staff, but they insist you take out their PPI you might be eligible to make a claim.
Joint Loans
If you took out a loan in joint names, but the PPI policy is only in one of the applicants names, you have a case to pursue compensation for mis-selling.
Different Terms
If you were sold PPI cover that is shorter in term than the principal finance agreement and the member of staff did not tell you this, you may be able to claim compensation.
Cancellation
If you were told that you can not cancel your PPI you might be able to make a claim.
1. You were self-employed, unemployed or retired when you got PPI
If you were self-employed when took out a PPI policy or were out of work, you should check whether your policy includes cover for unemployment - most do. If yours does cover one or either of such situations then this part of the insurance policy is effectively worthless - you will be being covered for an eventuality that can never happen.
If the person who sold the PPI didn't check out your employment status when you first took out PPI or it was clear to them that you were either not working or were self-employed and they still sold the product to you anyway, there is a very good chance that there is a case for claiming back the premiums that you have paid.
In addition, many PPI policies have an upper age limit beyond which they would not pay out. If you were too old to make a claim when you first took out the policy you almost certainly have a claim. If you passed the age threshold during the duration of the policy you'll be able to probably reclaim any premiums which you have paid since that date.
2. You have been sold PPI even though you had a pre-existing medical problem
Many insurance policies exclude pre-existing health problems. So when you become ill with a sickness that you've already had before then it is unlikely that the policy will pay out.
If you were not asked about your health at the time you were sold PPI or if you were told that your particular previous health conditions didn't matter, you very well may have a valid claim for mis-selling. Equally if there were exclusions in your fine print which you weren't informed about (or that you were given incorrect information about) you could also claim.
You need to examine the exact provisions of the original PPI policy document that you were given when you took out the payment protection policy
3. You thought PPI was compulsory or that your particular application could be disadvantaged by being without PPI
Some firms mis-sold PPI to consumers on the basis that it was stated that PPI insurance was compulsory when it was not, or they suggested that a loan application was more likely to be refused if there wasn't any PPI cover.
PPI should only be optional and if it wasn’t made clear to you that the ppi policy was optional or if you felt you were coerced into buying the cover or you were told your application for credit couldn't continue if you didn’t take out PPI, these could well be grounds for a legitimate claim.
If after 14 January 2005 you were told it was ‘strongly recommended’ , this is known as an ‘advised sale’. Unless you were issued a ‘demands and needs statement’ that sets out why your specific policy was recommended as suitable for you, you have grounds for complaint.
4. You were sold PPI that didn’t match your circumstances
Till May 2009, most PPI policies were sold as ‘single premium’ cover. This is where the cost of the insurance was added onto the loan terms or finance agreement and you had to pay interest on this as well as the sum you'd borrowed.
Most of these single premium PPI policies were set up to last for a standard 5 years. If the period of your loan was for a different period to the PPI cover then you may be able to claim a refund
If you got a loan in joint names but only one individual is covered in the PPI policy you have, you may also have been mis-sold.
In the event you already had some insurance cover that could cover you for the same eventuality such as an employer’s income protection insurance - and the PPI seller was aware of this prior to deciding to signed up for the cover, you may additionally be able to get a reimbursement.
5. You didn’t know you had PPI
It could be that you just bought payment protection insurance without even realising it. Maybe it was included in the original quote that you were given for the loan without it being explained that it was an extra item or was added on without you knowing it.
Some loan and credit card applications have used pre-ticked boxes that required customers to opt out of having PPI with their loans or credit agreements as opposed to opt in. This is viewed as mis-selling.
If you failed to uncheck the box then you will probably have a legitimate claim.
You Already Had Cover
If you were already protected by some other policy or by your employers provision for unemployment or sickness and you told the member of staff, but they insist you take out their PPI you might be eligible to make a claim.
Joint Loans
If you took out a loan in joint names, but the PPI policy is only in one of the applicants names, you have a case to pursue compensation for mis-selling.
Different Terms
If you were sold PPI cover that is shorter in term than the principal finance agreement and the member of staff did not tell you this, you may be able to claim compensation.
Cancellation
If you were told that you can not cancel your PPI you might be able to make a claim.