Misselling Of Payment Protection insurance

Whether you can make a PPI reclaim depends on if it was missold to you. Generally speaking, the policy must be fair, full details explained and must be suitable for your circumstances.

Pressure selling

A frequent compliant is the overly pushy sales person. Often, they state or imply PPI is a requisite for the application to proceed or influences the interest rate offered. In most cases - this not true.

Also, we often hear that is was sneaked in with hardly a mention. For the sales person to state "Your full protected repayments are £xxx per month" is not good enough.

All aspects of the PPI policy must be explained with full clarity at the point of sale.

Can never claim

An amazing 85% of PPI claims are rejected by insurance companies. This compares with 22% for car insurance . This is because policies are sold to people who due to their existing circumstances, have no chance of making a claim. This is almost certainly misselling.

Unemployment Cover

Often this is on the assumption that you're currently employed and have no other cover or income. If any of the following applies to you when the policy was sold, you may have a case for a reclaim.

Planning to retire before loan agreement ends.
Planning a return to full time education before loan agreement ends.
Knowing about impending redundancy or the possibility of it.
Working less than 16 hours per week.
Working on a temporary or informal basis, such as agency work.
Due to give up work to have a baby or take maternity leave.

Too Old

PPI is sometimes sold where the policy holder is too old for the cover provided. Many policies have upper age limits of 65 or 70 years.

Pre-Existing Medical Conditions

The problem here is with pre-existing conditions. PPI is bundled with a loan without asking basic questions to determine suitability. If you weren’t informed the policy could be affected by medical problems or were never asked about your medical history, then any claim rising from such medical problems could be rejected. This is a clear case of misselling.

Classic examples of this are those who have suffered an some point from stress or back problems. Any future loss of earning that can be attributed to these problems may not be covered.

Sick Pay

Your Employment contract may be such that sick pay will cover you in the event of being unable to work just as well as any PPI. You don't need it and so have to potential to re-claim.