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Archive for tag: 5 Top PPI Mis-selling Reasons

5 Top PPI Mis-selling Reasons

It is now an infamous saga, one that has forced changes in the British banking industry. It has seen vast changes and for the customer, it has been a chance to claim back their money after being mis-sold payment protection insurance (PPI).

With a deadline of June 2019 signalling the possible end of the PPI mis-selling saga, you may be thinking of claiming back your money.

If this is the case, you will need to know the top mis-selling reasons as one of these could be the reason why you can claim back thousands of pounds.

With up to 70% of customers being sold a policy they didn't need, you could on the brink of claiming back a substantial PPI windfall.

Unaware or did not agree to buy PPI

We find that many of our customers were unaware that they had a PPI policy. Many customers also had NOT agreed to the policy, mainly as it added significant cost to the loan or because they did not need it. On examining their paperwork, however, they found that a PPI policy had been added to their loan! If the reason for mis-selling detailed in your letter of complaint to your lender is you were either unaware or did not agree, then the onus falls on the lender to provide proof of your agreement.

'Fully protected' loan

Some customers purchased a 'fully protected' loan, only to find that this included a form of PPI. Whilst this may not be an issue in some cases, the terms and conditions of the PPI were not fully explained meaning that the possibility of you NOT being covered by the PPI policy is high.

Compulsory or not?

Other customers were told that the PPI policy was compulsory. The terms and conditions of the loan may state that some form of payment protection insurance is compulsory - this in itself is not the problem but you may have been given the impression that the only product that was suitable was their own PPI policy. If this happened to you, you may have a compensation claim.

Pre-filled application forms

Many lenders and banks pre-filled application for their customers and whilst this may seem helpful, look professional, neat and tidy, the likelihood is that many of the 'tick boxes' of optional items such as PPI, were already ticked. In other words, unless you noticed this or it was drawn to your attention, you would not have opted out. This is not fair selling.

Online or over-the-phone applications

Although the lender could say everything was in the terms and conditions, the long reams of small print are not something that are comfortable to read. In other words, the bank needed to draw things to your attention and that may not have happened.

We can help you claim your money back and we can start working on your case today - call us now!

Key PPI Terms Explained

The payment protection insurance (PPI) mis-selling scandal has been running for some time now. Like a good soap opera, it keeps rejuvenating its main storyline so that the good guys always win - the good guys in this soap opera, being the customers and consumer organisation that have fought long and hard to make PPI compensation a reality for the thousands of people duped out of their cash.

But when it comes to understand some of the terms and jargon associated with PPI compensation, it can be a little more difficult.

Here at Payment Protection Scotland, we have gathered all these terms together and endeavour to explain them;

APR - is a form of interest banks and lenders charge on product and is calledAnnual Percentage Rate. The higher the APR, the more interest you will pay back on your loan or credit card. You should get your premiums back and the interest charged on your loan or credit card and an additional 7% on top.

Generic term - this means that the term being used is a general one, a phrase or word that covers a whole heap of additional policies etc.PPI is a generic term; in other words, there are many payment protection insurance type policies but individual policies from different banks or lenders will be called different names, sometimes depending on what product they are meant to cover.

Examples include:

  • ASRI - Accident, sickness and redundancy insurance
  • ASU - Accident, sickness and unemployed insurance
  • CCI - Credit care insurance
  • MPI - Mortgage payment insurance

There are others too; if you are unsure, contact Payment Protection Scotland?

Letter of Complaint - this is the formal name given to the detailed letter or form you will send to your bank or lender asking for your money back. It sets out the reasons why you believe you were mis-sold PPI. There are examples available online or when you engage PPI Scotland to act on your behalf, we construct this as part of the claims package.

NB - Each account with PPI requires a separate letter of complaint. Your bank or lender assesses your account and your claim for compensation from the details contained in this letter.

Claims Management Companyor CMC - this is a company that acts on behalf of its client to make compensation claims. There are many companies who claim compensation for a variety of things, such as if you have been injured in an accident.

Payment Protection Scotland is a claims management company specialising in making compensation claims for mis-sold PPI. We charge a fee for our service, which can be found in the terms and conditions on our website OR, better still, give us a call and speak to one our friendly advisors.