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Archive for tag: The Problems with PPI

The Problems with PPI

Thousands of customers across the UK - including customers across Scotland - made hefty premium payments every month to their bank or lender for an insurance they thought was useful.


You were led to believe that the PPI insurance policy you were paying for covered repayments on the loan. Credit card, catalogue account or store care and the like, in the event you were unable to make them due to not being able to work.


Since the mis-selling of PPI scandal broke here in the UK back in the late 1990s, people have been astounded to discover that they werenot covered by the PPI policy.

They made payments each month for a policy that was of little or no use to them. But why?

  • Pre-existing medical conditions were not covered under the policy, something that was not made clear to them when they agreed to the policy
  • Some medical conditions were not covered such as back pain. Unless it was a serious spinal injury so severe that is rendered the customer disabled, the PPI policy didn't cover it.
  • Mental health conditions were not covered either. Debilitating depression or other mental health issues that stopped people from working for long periods of time were not covered by the policy.
  • Self-employed customers were not covered, although you may have told at the time that you were. The small print in the policy highlighted that for the policy to pay out in the event of a claim, you would have to close your business. Were you told this?
  • Anyone not economically active was not covered by the policy, despite it being sold to hundreds of retired people and students.
  • Some customers think that because they agreed to the policy, they are not eligible to make a compensation claim. This is known as an advised sale and should this happen, the bank or lender must provide you with a written statement, detailing why the policy is the correct one for you. In the case of advised sales of PPI, this did not happen.
  • Many customers were not made aware that the purchase of PPI was optional. In fact, many customers were also told - either explicitly or by being hinted - that taking out PPI on a loan would stand their application in a more favourable position.
  • The amount of commission paid to the broker or persona arranging the PPI policy that you bought was high. In some cases, it was over 50% of the cost of the loan! You can now claim this money back too. Why not ask our team more about it when you call us?

If you were applying for a mortgage or a much-needed loan, would you not sign on the dotted line if you heard this?

Payment Protection Scotland understands there are many issues tied up in the PPI scandal, with customers reluctant to challenge their bank. But the money is yours, it was never money for your bank, building society or lender to take.

There is a PPI deadline looming. Make your claim for PPI compensation with Payment Protection Scotland!