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Archive for tag: PPI Mis-Selling Tactics

Top 5 PPI Mis-Selling Tactics – Were YOU a Victim?

To claim PPI compensation, customers need to prove they were mis-sold PPI on their mortgage, loan, store card, catalogue account or credit card etc. This means telling the bank or lender why you believe it was mis-sold to you.

Tactics

Unsurprisingly, over the last six years of PPI compensation claims, there are some popular mis-selling tactics coming to light. So how is the top five looking?

1. Self-employed, unemployed or retired?

If you were NOT asked about your employment status OR after making your employment situation clear - you were not in employment or you were self-employed or enjoying retirement - but were still sold the policy, you have an eligible compensation claim.

Most PPI policies also had anupper age limitbeyond which the policy would not pay out, normally 65. Therefore, if you were 'too old' to make a claim when you were sold PPI then you have a claim. If you passed this age threshold whilst you had the policy, you may be entitled to claim the premiums back after this date.

2. Pre-existing medical condition?

Exclusion for pre-existing medical conditions is fairly standard across many insurance policies. In other words, very few insurance policies will pay out on a medical claim if it comes to light you suffered from the condition etc. before you took out the policy.

However, many customers were not made aware of this when they took out the PPI policy and neither were they asked specific questions regarding their health.

PPI did not cover 'bad backs' unless it was a spinal injury of some sorts and neither did it cover mental health issues, two common reasons for extended leave of absence from work.

You should also have been made aware of any other exclusion under the policy.

3. Compulsory? Advised to buy?

Some financial institutions, banks etc. sold PPI policies on the basis that it was compulsory - which it is not.

The policy was entirely optional although it was oftenhinted to customers they were more likely to secure the loanor make a successful application for a mortgage etc. if they took out the PPI policy.

If you were sold the policy after 14 January 2005 and the PPI was 'strongly recommended' (or similar terms were used) then this constitutes an 'advised sale'. Unless you received documentation that clearly illustrated why this policy was recommended for you, then you may have an eligible compensation claim.

4. Did it suit your circumstances?

Up until May 2009, most PPI policies were sold as 'single premium cover' policies. This meant that the cost of the PPI was added to your loan and you were made to pay interest on this amount, as well as the loan amount you borrowed.

Most single premium policies last a 'standard' five years - if your loan or product lasted longer than this, then you may have a PPI claim. Similarly, you may also want to consider making a PPI claim if the loan was in joint names as PPI covered only one person.

Also, if you made it clear to your lender that you already had some form of payment protection in place, but they still sold you PPI, then you could have a claim.

5. Didn't know you had PPI...?

Most customers are surprised to find they had PPI cover! Some old policy agreements simply had a tick box to decline PPI on their loan etc. and this had now deemed to be mis-selling.

Check you PPI documentation and if any of the above apply to you and consider making a PPI claim!

Top 5 PPI Mis-selling Tactics

Ever wondered why the mis-selling of payment protection insurance (PPI) reached such dizzying heights? Apart from the fact that every bank and major lender were involved and that it was allowed to continue unchallenged for so long, it was also because there were so many reasons why it was not a suitable policy for people.

Painted as a 'catch all' insurance policy, PPI was, in fact, an insurance policy that would only cover a small percentage of people. This was because the terms and conditions were very narrow and restrictive. People were not always given chance to examine the small print either as the bank did not provide clear information about what was, and what was not covered.

Thus, if you are looking for the top 5 reasons why and how PPI was mis-sold, take a look at our list:

#1 Employment status

If you were self-employed, unemployed, retired or worked part time, the likelihood is that you would not have been covered by the PPI policy. Some policies may have covered you if you were self-employed but only if you shut down your business in order to make a claim.

If you were not asked about your employment status or, you can prove that the bank did know how you were employed etc., then you have a case to claim your money back.

#2 Pre-existing medical condition

Many customers will have an existing medical condition, of which they are aware and either manage or receive treatment and medication. It is a standard exclusion under most types of insurance that any pre-existing medical conditions would be excluded under a standard policy.

The problem with PPI is that it was still sold to people even when the bank or lender had been made aware that the customer suffered from a medical condition. Or, the exclusion was not drawn to their attention. Would you have paid for something if you knew it was useless?

#3 Compulsory purchase

Many people were under the impression that they had to buy PPI. Without it, their loan would not have happened and they would have been placed in a difficult situation.

The fact is that many people already had a similar insurance type policy that would have been more than sufficient to cover repayments on a loan, credit card and so on.

#4 Not suit your circumstances

Many people were 'advised' to take out PPI on their loan. As a customer, you may have felt that the representative was saying that this policy was the right one for you and your circumstances but, you are unclear as to why this was.

#5 You have no idea you had PPI

Check your documents as you may be surprised to find you have PPI…