Payment protection insurance is meant as a useful and beneficial financial insurance package. It is meant to protect borrowers against unforeseen changes in circumstances that would lead to difficulties in making payment; changes such as redundancy or serious illness. However, a High Court ruling found that lenders and brokers were guilty of mis-selling these policies to financial consumers that took out loans, mortgages, credit cards, and other financial products. In these cases it is possible for the borrower to claim PPI compensation.
There were many ways in which payment insurance was found to have been mis-sold. If a policy was not suitable for your circumstances then you should not have been sold it, or should have at least had the reasons for its unsuitability explained. Some lenders were found to be selling policies to those that were self employed, near retirement age, or in the NHS or armed forces and, in the majority of cases, the policies were not suitable for these people and would not have paid out in the event of them needing the insurance.
Another way in which policies were commonly mis-sold was to essentially hide the policy within the mortgage or other financial product. Borrowers should always have been made aware of the existence of the policy but this wasn’t necessarily the case.
If you believe that PPI was included in your policy but you weren’t made aware of it then it may be necessary to check your terms and agreement from the date you signed for your loan. Alternatively, ask your lender for details and to give you a breakdown of the costs that make up your monthly repayments. Lenders should provide this information and it may provide you with the information that you need to start processing a claim.
Compensation for mis-sold PPI policies can total several thousands of pounds although the actual amount will vary depending on how much you have paid and over what period. As well as reclaiming the actual amount you have paid towards your policy you are also entitled to claim interest for the period and if you have more than one policy it may be possible to claim for all of them.
Visit CanaryClaims.co.uk for more information on claiming PPI compensation and to see how they can help you claim back what could amount to thousands of pounds in mis-sold policy payments.