Payment Protection Insurance (PPI) Mis-sold PPI?
There are clear rules that finance firms and advisers have to follow when selling payment protection insurance policies – despite this, our research shows that at least two million people may have a PPI policy they would never be able to make a claim on.
PPI mis-selling checklist
If you can answer 'no' to one or more of these questions, then you may have been mis-sold PPI.
If the insurance was optional, was that made clear to you?
Did the adviser tell you about any significant exclusions under the policy – for example, the exclusion that says you won't be covered for any pre-existing medical condition?
If you took out a loan or finance agreement, did the adviser make it clear that you would have to pay for the insurance up front in one single payment?
If you had to pay for the PPI as a single payment, did the adviser make it clear that the insurance cost would be added to the loan and you would be paying interest on it?
Single premium PPI insurance normally only lasts for five years. If your loan or finance agreement was for longer than this, did the adviser make it clear that the insurance would run out before you had finished paying for your loan or finance agreement? The adviser should also have told you that you would continue to pay interest on the insurance premium, even after the insurance expired.
- If you bought PPI after 14 January 2005 did the adviser try to persuade you to take it out by saying something like 'we strongly recommend that you consider taking out PPI'? If so, the sale counts as an 'advised' sale and they should have issued a 'demands and needs statement' to show why a particular policy has been recommended and why it is suitable for you. If they didn't, this is grounds for complaint.
What to do next
If you answered 'no' to any of the questions in the checklist you should make a formal complaint as you may be entitled to compensation. Use our PPI re-claim tool to get redress.
If you didn't answer 'no' to any of the questions you probably weren't mis-sold, but you might still want to cancel your PPI in favour of better protection.