What is PPI?
Payment Protection Insurance or PPI offers short-term protection. This type of insurance coverage offers you a loan payment in the event you lose your job, or you are unable to work due to an accident or sickness.
If you encounter a problem that prevents you from earning an income, PPI will assist you keep up with the credit card or loan repayments. Most people use PPI to repay their credit card payments, mortgage payments, and loan payments.
What Does a Typical PPI Policy Covers and Does Not Cover?
A typical PPI policy covers:
• Loss of job
• Situations that prevent you from pursuing a job
• Even death (in some policies)
For instance, you have taken out a PPI for your mortgage and you suddenly become jobless, your PPI will provide you with the amount needed to repay your mortgage each month. In most cases, PPI will not cover the first 90 days after you have stopped working, meaning that you will need to make payments yourself during this duration, certain medical illnesses, pre-existing conditions, and retired and unemployed people.
Who Needs PPI?
Anyone who needs to make:
• Mortgage repayments
• Credit card repayments
• Loan repayments
If you have to make any of these repayments, you may want to consider applying for PPI in the event you lose your job or fall sick unexpectedly, as it will continue to pay for you. However, not everyone requires PPI or is qualifies for it.
You are ineligible for PPI:
• You are unemployed instead of jobless
• Your partner or family supports you financially
• You have enough savings to continue making mortgage, credit card, or loan repayments regularly
• You only have spare money to pay for basic insurance, such as auto insurance, personal belongings coverage, or building coverage
• You can live comfortably on the money you receive while you are sick, or you have an employee benefits package, which offers you a salary for six months
But did you know that you may already have PPI, having been sold it without knowing or sold it without needing it.
Do You Think You Have Been Mis-sold PPI?
Several years back, several policyholders found out that banks mis-sold PPI to them. Since they could not make a claim on it, it was useless to them. Banks mis-sold PPI to them even though they did not qualify for it.
For instance, people who were retired from their jobs found out that they had been paying for PPI all this time with some not even knowing they had PPI. After this fact become known, financial institutions faced a Payment Protection Insurance mis-selling compensation lawsuit, which they lost in 2011.
Now, people can make a claim against the bank that mis-sold PPI to them. The court ordered banks to look into their records to determine who mis-sold PPI and inform the policyholders to reclaim their premiums — the payments they made to keep it.
Have You Been Informed by the Bank for Being Mis-sold PPI?
Once a bank identifies a problem with the PPI policy sold to a person, they will send a letter to the person to inform them on the process of submitting a claim to reclaim their premiums. The chances of the bank mis-selling PPI to you is high, as more than 64 million policies were sold in the United Kingdom between 1990 and 2010 with some dating back to the 1970s. Till date, banks have repaid more than £29 billion to people who filed a claim for being mis-sold PPI.
Some of the ways banks could have sold PPI to you without knowing include:
• You did not agree to having PPI, but banks sold it to you anyway.
• Banks did not make it clear to you that you were applying for PPI, and that you did not want it.
• Banks told you that if you did not apply for PPI, you would not be able to apply for a loan, credit card, or some type of card, or you felt that they pressured you into applying for it.
• Banks did not explain to you what PPI was, or they recommended you apply for PPI that was not suitable for you, and if they had explained the entire process to you properly, you would not have applied for it.
How Do You Know You Had PPI Sold to You?
Most often, PPI was sold with the following products:
• Business loans
• Catalogue shopping accounts
• Credit cards
• Flexible loans
• Hire-purchase agreements
• Personal loans and secured loans
• Point of sale loans
• Store cards
Anyone who has had any of these products in the past should check to see if they have mis-sold PPI. If you still have your credit card statements or agreements, read it to find out if they mis-sold PPI to you. However, some businesses refer to PPI with another name. Here are some examples of alternate names for PPI:
• Mortgage Care
• Payment Protection Cover
• Credit Card Repayments Cover
• Credit Repayment Protector
If you find any of these names on the credit card statements of agreements, you can make a claim to get your money back.
Do You Suspect You Have Been Mis-sold PPI?
If you suspect the bank for having mis-sold PPI to you and you did not receive a letter, you can still file a claim against them. Most likely, you did not receive a letter because the person who sold it to you decided to omit your name from the bank’s records.
How Can Find Out You Have Been Mis-sold PPI?
You can visit Crosfill & Archer and start your free online PPI check to find out if you are owed compensation. It only takes five minutes and we recommend everyone do it even those who do not think they have been mis-sold PPI. If you were mis-sold PPI, you will become eligible to receive potentially thousands of pounds in 6 to 10 weeks.