Payment Protection Insurance Mis-Selling

If you have ever taken a PPI policy on a loan you could be one of the many thousands of people who have been mis-sold a PPI policy and be entitled to claim compensation.

What is payment protection insurance?

Payment protection insurance, also known as PPI or Loan Protection Insurance is sold to you when you have any kind of loan. It is a protection insurance sold to cover your monthly payments in case you have an accident, fall sick or become unemployed.

How has it been mis-sold?

The problem lies with the person or organisation arranging the loan trying to sell you PPI. Some organisations have an aggressive approach to the sale of PPI. In some circumstances, the sale of PPI is so aggressive, that the person selling the insurance to you will not ask the right questions to make sure that the insurance is suitable for you. This often results, in you purchasing an insurance policy that will actually be worthless if you ever need to claim on it.

So who may have mis-sold me payment protection insurance?

Who qualifies?

A variety of circumstances exist for determining whether you have been mis-sold a policy:

• Out of work or self-employed at the time when the policy was sold to you? - you probably cannot make a claim under the policy so it is effectively worthless
• Forced to take out the insurance in order to obtain the loan or financing arrangements? - you should be free to obtain the insurance from another, cheaper supplier
• Not asked at the time of sale whether you already had a PPI in place? - if you already had loans, financing arrangements or a mortgage in place, you may well already be covered or could have obtained an extension to that cover more cheaply
• No notification of exclusions in the insurance? - which might prevent you from making a claim under it
• No notification that you can get PPI from other sources?
• Receiving a considerable amount of pressure to buy the PPI?
• Paying a lump sum for the PPI without receiving advice that it is possible to make the payments on a monthly basis?
• Paying a lump sum up front for the PPI, but then paying the loan off early without getting a refund of that insurance premium?
• Increasing your borrowing and automatically having your PPI payments increased?
• Not having the terms and conditions of the PPI explained to you?

What can you claim back for me?

All PPI premiums actually paid plus a write off of premiums yet to be paid. In addition we are able to claim interest on any premiums you have already paid; in many cases this will significantly increase your claim.

What do I need to provide you with?

Simply sign the documents where indicated, provide the original credit agreement (s) and send everything back to us in the freepost envelope provided. If we have to write to your lender to request a copy of your loan agreement, this will delay processing your claim as lenders take on average 40 days to return these documents.

How long does it take?

Obtaining original signed copies of your loan agreement with your lender can be legally delayed by your lender for up to 4 weeks, which is why if you can send your original agreement with your pack this will speed up the processing of your claim. From the point of receipt of your loan agreement the legal procedure involved will normally take from 3 to 6 months.

How much does it cost?

After you have submitted details of your Loan Agreements you will receive written confirmation of the exact cost that will be involved. The cost is 30% of the amount reclaimed plus VAT. However this is only payable if the claim is successful.

Can I decide to stop my claim at any stage?

Yes, again your legal advisor will be able to talk through all such aspects with you.

Do I need to continue to make my PPI payments?

Yes for a period, again your legal advisor will be able to talk through all such aspects with you.