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Archive for tag: PPI and the Self Employed

Are you Self-Employed?

Payment protection insurance - known to thousands of customers across Scotland as PPI - is a term that sends shivers down the spine of bank executives and employees. At one time, it was the golden policy, bringing in large profits and commission to match.

But now, it is something too hot to handle, costing banks more money collectively than it took to fund the London 2012 Olympics.

Some people were mis-sold the policy because they would not have been able to make a claim on the policy. But why?

The idea behind the policy is that in the event of you being unable to make repayments on your loan, credit card etc. the policy would kick in and make the repayments for you. Usually lasting for a set period of time - most policies would make payments for 12 months - PPI was seen by many as a sensible financial product to have in place.

But, some customers were not made aware that they were excluded under its terms and conditions. Even though banks and lenders knew this, it was sold as a blanket policy alongside the main financial product.

Self-employed

Those people running their own businesses, at various times, rely on their good working relationship with their bank to fund some aspects of their work. For example, taking on a large job that needed large cash injection upfront may have been funded by stretching an overdraft or allowing more credit on another credit facility.

With this relationship in mind, when you were offered a product by the bank that covered repayments, you would think they were doing so with your business in mind.

However, check the finer detail carefully and you may be surprised to learn that in order to claim on the policy, you would need to cease trading.

With many cases being referred to the Financial Ombudsman Service (FOS), this body along with the various consumer groups are putting pressure on banks, referring to this as an unrealistic request. For small businesses, with one or two members of staff, it would be fool hardy to think that in order to claim on the PPI policy they would need to cease trading!

If you are elf-employed...

... in all likelihood, if you find PPI on any of your business accounts then you are entitled to make a PPI complaint, asking the bank or lenders for your money back that you paid in goodwill for a policy that was, in all intents and purposes, useless.

Payment Protection Scotland can help! We work with hundreds of customers across Scotland, both domestic and business people looking to claim back the money they have paid for a PPI policy that was worthless. Why not call us to find out more?