Are You Entitled To PPI Compensation?

by on July 25, 2018

It’s likely that, by this point, you’ve heard about the possibility that millions of people are currently eligible for compensation and a claim for mis-sold PPI. You may also be wondering whether you’re one of those people and whether you could be looking to reclaim PPI in the near future but let’s be honest, it’s not always made clear just what ‘mis-sold’ entails. Here, we’ve put together a quick guide to help you work out whether you are entitled to PPI compensation and how you could go about claiming it if you are.

What Criteria Are There?

Your entitlement to a PPI claim often boils down to whether you were misled on PPI when taking out a loan or applying for credit (e.g. Credit Cards, Mortgages, store credit, payment plans). There are a number of criteria to consider when determining whether you were wrongly sold PPI, and this can come down to the following:

– You were sold PPI without your knowledge or consent
– You were misled by being told PPI was compulsory
– You weren’t given substantial information regarding the criteria for claims
– You were above the upper-age limit for claims
– You had a pre-existing medical condition or were led to believe this wouldn’t matter when claiming
– PPI cover was shorter than your loan term, but you were not informed of this
– You were unemployed, retired or self-employed at the time of taking out the loan

Why Was PPI Mis-Sold So Widely?

When it came to selling PPI to customers, banks and other financial institutions truly could rake in quite the substantial profit. Whether through high commissions or by mis-selling the policy to unknowing customers, PPI was a great way for these companies and businesses to bring in money, to the point where it even became the main source of income for most.

With this in mind, it’s easy to see just why so many companies were attempting to mis-sell PPI to their customers, but how did so many people fall for it? When considering all of the terms and conditions of any loan or credit, most of us don’t know them inside out and when it came to PPI, it was often advertised as the protection insurance it was designed to be. However, with misleading information and a lack of clarity from businesses and banks, this became an issue and it wasn’t until the FCA got involved that it truly became clear on the sheer scale at which this was done.

How To Make A Claim

If you’ve read through the above and think you might be eligible for PPI compensation, you can make a complaint or claim in order to gain back what was mis-sold or some form of compensation as a result. Most banks and institutions are already writing to customers regarding these PPI claims, inviting them to apply for a claim but for those who don’t have such a letter, talking to your Financial Ombudsman or making a claim through a company (make sure to do your research on fees and rates!) could be the route to take.

Make sure you track down any and all paperwork you still have regarding the PPI insurance (sometimes referred to as loan protection cover, MPPI, ASU (accident sickness unemployment) or similar) so that you can provide proof when needed. Most banks and institutions will still have records of your loan, however having copies of your own can give you extra peace of mind.

Whether you’re sure you’re eligible for a claim, or you’re still undecided, contacting your provider where possible could give you a better idea as to whether you had PPI, and whether it was a misleading policy. If this is the case, you may be entitled to make a claim and therefore receive compensation under FCA regulations.

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