5 Reasons for Mis-sold PPI

Payment protection insurance is a big business and made up large parts of the banks and loan companies profits.

Mortgage and Insurance brokers who sold payment protection insurance were heavily incentivized through commission payments, sometimes as much as 80% of the premium.  So it is easy to see why they wanted to sell the policies.

There are a number of reasons why payment protection (PPI) was mis sold and we are going to list 5 to help see if you recognise the circumstances, which could mean you are entitled to compensation.

1.  You didn’t need or want payment protection insurance.  In many circumstances bank staff were targeted as part of their performance to sell PPI alongside loans and credit cards.  They were trained very well in the sales process and lost focus of what you the customer wanted and often the conversation was heavily weighted in talking about loans with protection.  If you have a loan or have had a loan in the last six years with PPI that you didnt ask for you may have been a victim of mis sold ppi.

2.  You were self employed at the time you applied for your loan.  In some circumstances cover was available for the self employed but it was very limited.  The advisor would generally focus on the part of cover that was available and not fully explain all the circumstances that you would be able to claim.  If you were self employed and have had a loan in the last six years then you maybe entitled to reclaim self employed ppi today.

3.  You had pre existing medical conditions that you declared to the advisor.  Dependent on the condition it may have led to the policy being declined or at best restrictions on the policy.  Advisors in some circumstances changed the answers given to ensure the ppi policy was sold.  Where they did record the medical conditions they often failed to explain cover would be restricted.

4.  When applying for your loan the advisor implied that the loan was more likely to be granted if you took the ppi policy.  Advisors would often provide the quote saying your fully inclusive loan payment will be and never quote for the loan without protection.  Another common tactic would be to tell customers that they would have to refer the case to a manager and a decision was unlikely to be made today, however if you take the protected loan I can approve it now.  These are classic cases of a mis sold ppi.

5.  Many customers are not aware that they in fact have PPI.  We have seen many customers cases where they have been made redundant and not made a claim as they were unaware the insurance was in place.  This is a cast iron case of mis sold ppi, and you should reclaim ppi now.

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