Miss Sold PPI Explained

Payment protection insurance is a form of insurance that is sold to people to go alongside loans, credit cards and mortgages. It is set out to protect the lender if the borrower cannot repay the loan. This is especially for circumstances that include the individual who has taken out the loan becoming ill, or unproductive due to an accident. Some lenders require individuals to take out PPI, or they will not lend the money out otherwise. However other lenders have it as an optional extra.

There are a lot of cases where PPI has been missold to customers of loans or financing. This is where the customer has been pressured heavily into purchasing the insurance when they did not need it or want it with their policy.

There are several different types of missold PPI and this is the basis the main body of this article. It will explain the different types of PPI misselling clearly and briefly.

The first type of misselling is what is known as a forced sell. This is where the lender actively refuses credit until the individual seeking the loan has taken out PPI insurance. This is against regulations and does not follow good lending practices. In this case you can reclaim the PPI insurance after the course of the loan has been repaid.

The second case is where there was a lack of information given specifically about the PPI that accompanied the loan. This is where the adviser or bank clerk failed to explain that the loan comes with PPI insurance. This counts as the PPI being forced upon the customer and again a reclaim can be put in once the full loan balance has been repaid.

There are also cases called assumptive sales, which are similar to being given a lack of information. This is where the representative of the selling company adds PPI to your loan on the assumption that you need or want it. However if you are not clearly told of this addition and given the options on it then you are entitled to a reclaim payment.

Finally there are situations where the PPI sold was nul and void from the start. This is for situations where for example the individual was self-employed, not in employment or retired. These people had not use for PPI and therefore taking this out on their policy was completely useless. The lender would have known this and therefore the policy was missold.

Payment protection insurance has become a big issue in the lending industry and following the  ppi judicial review outcome  many people are now finding out that they are entitled to refunds. Lenders who have misrepresented or missold PPI are now having to pay heavy prices in refunds back to customers who didn’t need or want the insurance in the first place.

 

Find Out Now If You  Can Make A  Claim .Call Our PPI Advice Line Now On 0161 6158171