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Do you Have Questions About PPI?

Many people, although they have heard a lot about payment protection insurance (PPI) in the press and so on, are still unsure that they have a claim. Many people are also cautious, wanting a little more information before they jump into claiming PPI compensation.

As a result, many people call Payment Protection Scotland with question about the policy, where it can be found and how to make a claim. Here, we have collated some questions we have been asked recently.

Did I have to buy PPI?

Many people were sold PPI by bank representative and given the impression, or even told, that it was a compulsory part of making an application for a loan, or opening and account etc.

This was not the case.

Some people were also told, or given the impression that they application for credit was more likely to be accepted should they take out the PPI policy.

This was not the case.

The rules are the same today as they were all those years ago; you do not have to buy anything that the banks offer you at the time you take out a loan etc.

But the bank said they wanted their money protecting?

This is understandable and not wholly unacceptable. However, the important factor to note is that the customer did not have to buy their product.

Many customers already have sufficient insurance cover with other products that they pay for. For example, some people had critical illness cover that may have provided a lump sum if they were unable to work for a length of time.

Other customers will have had benefit packages with their employment that also meant there would be at least 12 months cover or payments made to them to cover debts such as a loan.

Many banks and their representatives told customers that this was not sufficient, when this was clearly not the case. In effect, many people bought a duplicate policy.

How likely were PPI policies to pay out in the event of a claim?

The pay-out rate for PPI policies was around 15%. Compare this to car insurance pay out rates with was 80% or over, and you can clearly see the issue.

Not only this, many PPI policies were also slow to pay out too. And various consumer groups pointed out that the claiming process was unduly complicated. In effect, it would seem that the banks or lenders hoped the consumer would give up before they managed to claim any money.

With the possibility of a PPI deadline looming, it is important that you make your claim as soon as you can. Why not call today?

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