PPI Single Premium Polices

Single premium policies

When you sign up for PPI, you either pay as you go month-by-month, or pay up front for the whole policy covering the full duration of the loan agreement. The latter is called a single premium policy.

The policy premium is added to the loan and you then pay interest on top of it. So in effect, you are forced into borrowing the money to pay for the policy.

If we find you have been missold a single premium policy, you can get back the premium plus the interest you were charged.

Policy no longer needed nor suitable

You may consider the above to be be unfair, but the real rip-off is when you settle the loan early. You no longer need the insurance, so surely you are entitled to get back the money you've paid for insurance you no longer require? This is not so in all cases as some polices were sold with "Nil refund terms".

The Financial Services Authority took a dim view of this so existing and new polices must now allow for a fair refund or cancellation policy in the event of settling a loan early.

Also, if your circumstances or the loan agreement has changed so that the policy is no longer suitable, such as you're now self employed rather then employed, you should make a claim.

If any of the above applies to you, but you have not got a refund or rebate, then please contact us for advice.