Payment Protection Insurance Claims
If you have taken a loan out in the last 6 years with personal protection insurance, you could be eligible to claim back thousands of pounds in compensation. Out of 10 billion PPI policies sold, as many as 30 million policy holders may have a claim for compensation. In many cases, PPI is unnecessary as, according to the Citizens Advice Bureau, only 4% of people ever claim on their policies, and 1 out of 4 of those claims is refused due to small print exclusions.
PPI aims to protect borrowers against payments in the event of an accident, sickness or unemployment, although it frequently fails to do so. Unbeknown to customers, Mis-sold PPI usually fails to protect against the most common causes of sickness or unemployment, such as stress and back complaints. Premiums for PPI can add from 13% to 56% to the total amount to be repaid, and you could have unwittingly taken out PPI without even knowing it. Many companies include it in quotes for loan repayments or put a tick box in the small print to check if you don't want PPI, meaning it often gets lost in legislation. (CAB research) It won't affect your credit rating by claiming, and you could receive substantial compensation, including reparation for insurance already paid for, including interest.
Mis-Sold PPI
When taking out your loan or credit, you should have been asked a number of questions. If you weren't asked just one of these, it's highly likely you will be eligible to claim on your policy.
Employment Status - If you are self-employed, a full time parent of carer, a student, retired or going into retirement at the time the loan was taken out, then PPI becomes void.
Medical History - If you were not asked any medical questions at the time of taking out the loan.
If you are over the age of 65-70 or have since bypassed that age whilst still making repayments PPI becomes void, and therefore you are eligible to claim any money back you have paid since reaching that age bracket.
Not told about exclusions of PPI which may mean the policy is of no use to you.
Were you pressured into buying the policy, or not informed that you were in fact taking it out. Banks will often use the phrase "fully protected" to avoid actually saying insured loan. E.g. - "The monthly repayments for your fully protected loan will be..."
Were you told that unless you took out PPI you weren't eligible to receive the loan or couldn't take out the product you were looking for.
Were you not informed it would be a single premium policy - that is the loan amount, interest and insurance would be added together to make a lump sum, on which you would then pay interest instead of paying for your insurance month by month, you have effectively borrowed more as interest will be charged on your insurance as well as your loan?
Even if your policy is finished you can still claim on PPI paid!