Payment Protection Insurance Mis-sellingWere you a victim?
Expert help and support from Greg Vaughan Financial Services: the compensation claims specialist
As well as being a pensions specialist, Greg has successfully won compensation for many clients that were mis-sold payment protection insurance.
What is Payment Protection Insurance (PPI)
PPI is intended to cover your repayments on a personal loan, mortgage or credit card if you are unable to make payments yourself due to accident or illness or being made redundant. In theory, it is a good idea to make sure your debt repayments will continue to be paid if you are faced with the sudden loss of your income. Banks and loans companies use frightening statistics to reinforce the message that you just never know what’s around the corner and it’s therefore sensible to have suitable insurance in place.
** If you include your mobile number, you will receive a quick text message when Greg replies, so you know an email is waiting for you. Please check your “spam” or “junk” mail folder for the reply if it is not in your inbox – some email systems may divert replies away from your usual inbox without warning.
You didn’t have to take PPI
Against this background PPI was sold in huge numbers (7 million policies annually). Often it was automatically included with a loan or added to a credit card application, giving the impression it was a condition of taking out the product. In reality, this was not so. Customers had the right to refuse it, but many were told otherwise.
Why was PPI so widely mis-sold?
PPI was incredibly profitable for the companies selling it. Consider this typical example from the height of PPI sales ten years ago. A loan of £10,000 over 5 years would have cost £11,900 in total repayments. With PPI included, the consumer would have paid back £14,950 by the end of the 5 years. The difference of £3,050 represented almost pure profit to the policy seller and insurer. Why? Because the barriers to making a successful claim were so high, most were rejected. Such profitable business nearly always results in mis-selling; i.e. the sale of a policy to someone to whom it is unsuited.
Think you have been mis-sold?
PPI was often sold to those that did not want it but were told it was mandatory; to those that did not even know it was included in the loan or added to their credit card; and even to those that would not even be eligible to make a claim. If you have been paying for PPI with a loan, credit card or mortgage, there is a very good chance the firm selling it did not follow the rules they should have done before it was added to your loan or card, meaning you have been the victim of mis-selling. Consequently, you are entitled to your money back. Please contact Greg so he can recover all the premiums you paid, with interest added on top, or simply fill out the Contact Form opposite. If you are still unsure whether you might have been mis-sold PPI, please take the “PPI 60 second Mis-selling Test” below.