Mis-sold Loan PPI
Mis-sold loan PPI has become a major issue in recent years with hundreds of thousands of UK borrowers affected. Although many people have already registered a complaint and received a refund there is still some confusion around what exactly constitutes mis-selling and many people remain unsure whether they may be entitled to make a claim.
Mis-selling is a label used for a wide range of failings relating to the sale of payment protection insurance. Below are some common examples. If any of these situations relate to you, your loan insurance may have been mis-sold and you may be entitled to make a claim.
Were you aged sixty-five or over, self-employed or suffering from a serious pre-existing medical condition at the time you were sold you policy? Most PPI policies do not offer coverage to people in these situations. If you were sold a policy there is a very good chance it was mis-sold and you may actually be ineligible to use it. The good news is you are entitled to make a claim for mis-selling.
Were you unemployed, retired or in full time education? Loan payment protection covers borrowers in the event they are made involuntarily unemployed. If you were not employed when you took out your loan, you should not have been offered this form of cover.
Were the full terms, conditions and costs explained to you? Before you took out your loan payment protection insurance your lenders should have given you detailed information regarding the policy. If you did not receive this information your policy may have been mis-sold and you may be entitled to make a claim.
Were you placed under undue pressure to take out the cover? Because of the significant rates of commission on offer, some salespeople used underhanded tactics to sell cover including high-pressure selling. If you felt pressured into taking out the policy you could make a claim.
Was the policy added without your knowledge or consent? In some cases, because of human error or a desire by salespeople to earn additional commission, policies were added without the knowledge of the borrower. This is a clear case of mis-selling.