PPI, or Payment Protection Insurance, is an insurance policy that is taken out to provide coverage for when you are unable to keep up with your monthly payments. There may be various reasons why you are no longer able to make your monthly payments but the usual reasons are loss of employment or sickness. PPI is typically taken out alongside the loan it is to cover, paid in the same way as well – this is where PPI claims come in.
What is mis sold PPI?
At the heart of it all, PPI is optional. There is mis-selling if in any way you were coerced or forced to take out a Payment Protection Insurance policy. Most people don’t need it or don’t want it but some lenders will tell unknowing clients that they can’t take out a loan or a credit card without taking out a PPI policy as well. Worse, some lenders will automatically tack in Payment Protection Insurance without the client’s knowledge or consent, making them pay for more than what they agreed to. There is also mis selling if you are not getting the kind of protection you should be getting from Payment Protection Insurance or if your PPI policy does not have provisions for covering the entire length of your loan repayment period.
Can You Claim Back PPI?
You can generally suspect that you are looking at mis-selling if there is anything in your monthly statements that you can’t explain. PPI has its own terms and these should be indicated on your loan contract, even if your lender didn’t tell you that you were getting Payment Protection Insurance. If you go over your loan contract and see terms like “loan care”, “loan protection”, “payment protection”, and anything similar, there is a great chance that you have been mis sold.
The PPI Claims Process
The first thing you have to do is to clarify with your lender everything that you pay forevery month. Statements come with breakdowns but some are placed under vague categories. Talk to your lender first to clear the air. Sometimes, lenders can be reasoned with, taking out the need to seek professional help to get what you’re due. Should your lender refuse to budge, don’t worry because there are claims companies you can turn to. PPI offers practical protection but it is not cheap. If you’ve been secretly paying for PPI then, you’re looking at potentially thousands of dollars being returned to you.