While many PPI policies will have been missold, it’s important to remember that not all were. You need to check exactly what your policy covered and whether it was appropriate for your circumstances at the time you took it out.
There are several ways in which people have been missold. If you can answer ‘NO’ to any of the following questions you may have been missold and should make consider making a claim.
- If the insurance was optional, was that made clear to you when you took out the policy?
- Did the insurance/policy adviser tell you about any significant exclusions – ie, the exclusion that says you won’t be covered for any pre-existing medical condition?
- If you took out a loan or finance agreement, did the adviser make it clear that you would have to pay for the insurance up front in one single payment? If so, did the adviser make it clear that the insurance cost would be added to the loan and you would be paying interest on it? Single premium PPI insurance normally lasts only for five years. If your loan or finance agreement was for longer than this, did the adviser make it clear that the insurance would run out before you had finished paying for your loan or finance agreement? The adviser should also have told you that you would continue to pay interest on the insurance premium even after the insurance expired. If the advisor failed to advise you on any of the aforementioned points – you may be eligible to make a claim.
- If you bought PPI after January 14 2005, did the broker/advisor try to persuade you to take it out by saying something like “we strongly recommend that you consider taking out Payment Protection Insurance”? If so, the sale counts as ‘advised’ and the provider should have issued a ‘demands and needs statement‘ to show why a particular policy had been recommended and why it was suitable. If they didn’t, this is grounds for complaint and you could be eligible to make a claim.
Providers are required to review past sales for patterns of likely misselling and contact customers that they think are likely to have been affected. However, we would advise you not to wait as this may affect your chances of winning early compensation – instead, make the first move yourself and put in a complaint.
Contact us now to start your claim.