If you have taken out a loan with any high street bank, taken out a hire purchase agreement or even opened a credit card, then it is likely that you also took out Payment Protection Insurance (PPI) with it. If this is the case then you may be entitled to compensation.
The reason why this can be reclaimed is because in the majority of cases the insurance was mis-sold. Many people were not aware that this insurance was optional and often thought that they wouldn't get the loan if they didn't take the insurance out.
Sometimes the PPI was added without the knowledge or permission of the borrower. The purpose of Payment Protection Insurance is to cover the payments you have to make on a loan or credit card when you are unable to keep them up due to sickness, unemployment etc.
There are many situations when this insurance doesn't actually provide the cover you need. For example, if you were unemployed, retired or even self-employed at the time of taking out the policy you are ineligible to make a claim on this policy which makes it a total waste of time and money for you.
Did the sales person go through the process fully with you? Did they follow the procedures below?
They should have:
- Explained the full process to you
- Told you the Payment Protection Insurance (PPI) was optional and NOT compulsory
- Explained the terms and conditions in full
- Explained the total cost of the PPI to you
- Asked you comprehensive questions on your employment and health situation
