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Find out More About Making a Claim for Mis-sold PPI

What is PPI?

Payment protection insurance, known as PPI, is an insurance product that would make repayments on a loan, credit card or the debt that it was secured against, should you be unable to do so. This might be because you have lost your job or you become too ill to work.

What is the problem with PPI?

There are a few issues:

  • Expensive - when the issues surrounding PPI were first raised, one of the issues mentioned was its cost. For the high price people were paying for the policy, they received very little in the way of cover.
  • Inflexible - PPI, unlike income protection policies, were secured against a debt which makes it a very inflexible product.
  • Terms and conditions - not many people realise that in order to receive a successful pay out, they would need to meet a set of fairly stringent terms and conditions.
  • Low pay out - as a result, successful claims on a PPI policy were as low as 15%.
  • Slow resolutions - when people did make a claim, the amount of time it took to receive the pay-out was a long time meaning a customer could face significant financial hardship in the interim.

How was PPI mis-sold to people?

Again, there are many reasons why PPI can be seen as having been mis-sold to a customer:

  • Not given a choice - many people were told or given the impression that PPI was compulsory
  • The only option - customers were also given the impression that the bank's own version of PPI was the only option; if customers have shopped around they could have found a better policy at a better price
  • Guaranteed acceptance - for some customers, applying for a loan is an emotional decision and being told that by taking out PPI, they were more likely to be accepted for a loan meant many customers readily agreed to buy it
  • Not given all the facts - if you had known the policy would not cover you, would you have still bought it? The likelihood is not which is why many banks choose not to be open about the tight terms and conditions of their PPI policies

There are other reasons too so, if you don't think any of the above apply to you, call us to find out more.

How much can I claim back?

There are all kinds of variables that affect how much you can claim back including how long you had had the loan, credit card and so on, the premiums you were paying, any costs and fees incurred and so on.

To receive information specific to your case, contact Payment Protection Scotland now.

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