The mis-selling of payment protection insurance has been endemic to the UK financial services industry for years, millions of people have been sold insurance that they didn't need or want, often without even being told they were paying for it.
You might have seen in the news recently that a High Court ruling upheld that the banks and lenders responsible for these unscrupulous sales practices should be contacting the people they have mis-sold to and offering them their money back as well as reviewing their complaints procedures to ensure customers are always treated fairly.
PPI isn't always a bad product; it's mainly the way it has been sold that causes problems. If any of the following situations applied to you when you took out a loan or credit agreement you might be paying for unnecessary PPI, which can now be reclaimed.
Unaware that PPI was Included
Many customers have been given a quote for monthly repayments which included PPI as standard without any breakdown that showed it as a separate charge. Most people wouldn't notice the difference immediately and simply accept that the quote given is just for the loan repayments, and so have ended up paying for PPI without even knowing it.
Told That PPI was Compulsory
Some financial advisors, whether they were desperate for a commission or had simply been wrongly trained, have told customers they can"t take out a loan without a PPI policy to accompany it. This isn't true. If you have enough savings to cover your repayments having lost your job, or you have a comprehensive home insurance policy, PPI is not even needed. If PPI would be useful to you better deals are usually available from independent insurers such as British Insurance.
Given a Policy That You Were Excluded From
Financial advisors have sometimes failed to offer a PPI policy that is appropriate to the customers situation, groups such as students, the retired, self employed, unemployed, long term injured and those whose job carries a "foreseeable risk" of redundancy are usually not covered by the standard policies offered alongside lending products, making them a complete waste of money to such people.
The High Court has ruled that lenders should actively contact people they have mis-sold PPI to and offer them refunds, but I wouldn't hold your breath. If you think you are owed money by a bank or lender you should start by making a complaint to them. It's possible to get professional assistance with this, and rejected complaints can be taken to the Financial Ombudsman Service, head to
www.claimsfinancial.co.uk for more information.
