The mis selling of PPI on loans, credit cards and mortgages has
had extensive media coverage. The product that we were told would
cover us in the event we couldn't make loan repayments as a result
of redundancy or illness was, for some people, of little or no
use.
PPI policies were sold to customers on a series of myths and
fallacies, with key information omitted from the conversation (if
there was a conversation…).
Here are top five mis selling myths, and the facts that you need
to know when you make your PPI compensation claim BEFORE the
deadline of August 2019;
Myth 1 - Some banks and lenders told (or
implied) to customers that the purchase of their 'own brand' PPI
was compulsory.
Thefact is, that whilst your loan provider can insist you have
some form of repayment protection insurance, it doesnot have to be
their 'own brand' PPI product.
Myth 2 - Even if you have a PPI type policy in
place, you must have a duplicate policy to cover that particular
loan.
But thereality was that some customers already had an 'umbrella'
income protection type policy which would have offered sufficient
cover for the loan or credit card.
Myth 3 - you were more likely to be accepted
for a loan if you took out the optional additional loan PPI
policy.
Fact - No representative of a financial institution or bank should
have implied or made it known to customers that they were more
likely to be accepted for a product by taking out PPI. Credit
facilities are offered on a credit rating system, rather than
preference.
Myth 4 - everybody is covered!
Fact - this is not the case. For example, car insurance providers
payout on an average of 80% or more of the claims made BUT PPI
policies paid out on only it was 15% of claims made. Terms and
conditions of loan PPI policies may not have been fully explained
to you, so the 'employment benefit' part of the loan PPI would be
useless, for example, to anyone who was self-employed or
retired.
Myth 5 - banks will automatically pay back to
you the loan PPI payments you have made!
Not true - as a customer, you must make a claim to your loan
provider if you think you were mis sold PPI.
If you think any of the above has happened to you, then call
Payment Protection Scotland today to see how we could help you.