PPI covers the repayments of credit or loan agreements in the event that they can not be honored by the borrower due to illness, accident or unemployment. When effective, PPI can be an extremely useful and valuable asset. However, this is often not the case as millions of these policies have been mis-sold in the U.K. over the past few years. Mis-sold PPI policies are ineffective and worthless – they are literally not worth the paper that they are printed on. With as many as 2 million mis-sold policies in existence, billions of pounds have been paid and squandered in useless insurance premiums. Certainly this is 'the biggest scandal in financial services after pensions and endowments'. If you believe that you have been a victim of mis-selling then it is essential that you lodge a claim for the compensation of your PPI premiums as soon as possible. You could be in line for a payout worth £1000s. The grounds upon which your policy may have mis-sold are as follows:
If any of the following applied to you at the point of sale then you
probably have grounds for a claim:
1. You were under 18 or over 65
2. You worked less than 16 hours a week
3. You were employed on a temporary or contract basis
4. You suffered from stress or backache
5. You had an existing illness
6. You were aware you may become unemployed
7. You were not told about the cost of the insurance (or not told you were buying it at all)
8. You were not asked about any other insurance that you had
9. You were told that the insurance was necessary for you to get the loan
10. You were not told that the same policy could potentially be bought cheaper elsewhere
To get an idea of how much a PPI policy is worth in relation to the cost of the loan that it accompanies, see the research by the Citizens Advice Bureau below:
| Unsecured Personal Loan |
£8,933 |
£2,217 |
25% |
| Unsecured Personal Loan |
£11,000 |
£5,113 |
47% |
| Hire purchase for car |
£5,059 |
£2,157 |
43% |
| Hired purchase for car |
£6,895 |
£2,317 |
34% |
| Unsecured loan |
£5,600 |
£744 |
13% |
| Secured loan |
£25,000 |
£12,127 |
49% |
| Secured loan |
£35,000 |
£10,150 |
29% |
| Conditional sale for car |
£4,300 |
£2,394 |
56% |
| Unsecured personal loan |
£13,000 |
£3,367 |
26% |
(Citizens Advice Bureau evidence report findings Sept '05)
Our largest Payment Protection Insurance claim to date: £6,994.98
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