In the past two decades, we have begun to discover the extent at which PPI policies have been mis-sold by finance companies and major high-street banks. Although PPI as a concept has been widely discussed throughout advertisements for claims that individuals see and hear on a regular basis, many of these adverts fail to explain just how this insurance was mis-sold, resulting in serious confusion and a bulk of unsuccessful claims. Payment protection insurance was a form of protection that was offered with many lending deals such as credit card applications, purchases, loans and mortgages. It offered protection in case of, sickness, accident, unemployment, or any issue that may mean an individual is unable to make payment. However, not all PPI has been mis-sold, in some cases it is simply a valuable form of insurance helping to protect people in the case of unfortunate circumstances. However, the mis-selling of PPI has affected millions, leaving many eligible for refunds.
Why PPI was Mis-sold?
The mis-selling of PPI has occurred largely over the past twenty years, although some claims made on PPI were regarding insurance that was sold before 1990. Payment protection was often mis-sold by malicious banking officials in an attempt to push people into paying for something that they simply didn’t need. Because selling PPI meant that banks were able to keep a great deal of the commission that they made from the profits, many banks failed to give people the correct information they needed to decide whether or not PPI was right for them.
Payment protection insurance is considered mis-sold when:
- The consumer was mis-led into believing that purchasing PPI was not an optional choice, or may help their credit card, mortgage or loan to be approved
- The consumer was unemployed or self-employed when buying the PPI
- The terms and conditions of the insurance were not explained
- The product was added without the knowledge of the consumer
- The consumer was medically exempt from the policy, and yet sold it anyway.
The scandal of mis-sold PPI has brought many high-street lenders and banks under serious speculation, and has forced many to provide customers with some form of repayment.