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Archive for tag: Top 5 PPI Mis-selling Tactics

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…