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Archive for tag: Top 5 PPI Mis-selling Reasons

The Top 5 PPI Mis-selling Reasons

With the promotional campaign backed by the Financial Conduct Authority underway, the claims for PPI compensation are expected to increase. Customers are being urged to 'make a decision' on whether to claim PPI compensation by the 2019 PPI deadline.

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With the clock slowly ticking, it is important for you to decide too, if PPI compensation is something you want to enjoy. But what are the top 5 reasons for PPI being mis-sold?

Making it on the list at number 5 is those PPI policies sold to people who wereself-employed, retired or unemployed

Effectively the policy is worthless as the policy only applied to people who were employed full time and with a contract. Therefore, anyone working less than 16 hours a week or on a zero-hours contract probably wouldn't be covered by PPI either. If you were self-employed and made a claim it would mean closing your business, not something that many people needed to do or wanted to do in the case of short term illness.

Nudging at number 4 was the selling of the policy to people withpre-existing medical conditions

It would have been an unpleasant surprise if you had attempted to claim if you were unable to work for any length of time. Thinking you were being financial prudent, only to find it was a complete waste of your money as your pre-existing medical condition was not covered but the bank didn't tell you that when you bought it.

Middle of the list at number 3 was the selling of PPI as acompulsory product

PPI never has been compulsory and neither has taking out any other kind of insurance product when you have bought a loan, credit card, store card, opened a catalogue account and so on. After January 2005, if you were sold PPI on the premise it was 'strongly recommended' or advised, do you have the reasons why in writing? If not, this is mis-selling.

Nearly at the top at number 2 was the'not fit for your circumstances'

Until as recently as 2009, some PPI policies were sold as single premium. In other words, you paid upfront for something that was useless. Not only that, it did not cover the term of your loan. This is defined as not being fit for your circumstances, and it happened frequently.

Topping the chart at number 1 is not knowing you had PPI in the first place!

Can you believe that people were duped in 'buying' PPI by a single, tiny pre-ticked box at the end of the application form? You were and you were not aware of it.

Claim back YOUR PPI compensation with Payment Protection Scotland - call us to find out more!