What Is Mis Sold PPI and How Do You Make a Claim?

PPI loan protection is known under many different names such as; Payment Protection Insurance (PPI), Payment Care, Accident Unemployment and Sickness and Loan Protection. When taking out a mortgage, loan, credit or store card, many people also chose to take out Payment Protection Insurance (PPI) as a safeguard, to pay off their debts if they had the mis-fortune to fall ill or have an accident that meant they were unable to work, or became unemployed through no fault of their own.

Mis sold PPI has been one of the biggest scams to hit the UK financial industry, and the scandal turned into a media frenzy once it was found that not only were small lenders committing this crime, but well known high street banks were found guilty of mis-selling PPI. Due to the lack of the awareness, the PPI mis selling is growing increasingly day by day in the UK. PPI is mis-sold through an individual or an advisor. According to the FSA (Financial Services Authority) 75%-90% of both single and regular premium PPI policies may have been mis-sold in the UK. There are a multitude reasons for this. But the biggest reason is that the policies that the lenders sell are not designed to meet the individual needs of each borrower. Instead they are sold to realise the maximum profit for the lender.

There are many reasons in which you might have been mis sold PPI. Reasons why PPI may have been mis sold:

Mis Informed or sold the wrong policy

Had medical problems in the past - heart patients, diabetics, patients with a high blood pressure are not eligible for a PPI. Also people who are eligible for a full sick pay (nurses, doctors, police personnel, armed forces) are not eligible for a PPI.

You were self employed, unemployed or retired - a PPI policy does not offer any cover for the unsettled debts of students, unemployed persons, part-time employees, self-employed individuals, or retired people.

PPI does not allow for people who have reached the upper age limit (65-70) to apply. If you were in the upper age bracket and were sold the PPI, it is a mis sell and you can claim compensation

How to make a claim the two most popular options are

1.      1.  Using a respected, regulated claims handling company.

2.      2. You can raise a claim directly to the Bank yourself.

If you believe you have been Mis sold PPI you can find what to do about it and how to make a claim by visiting reclaim PPI, and you may find that you are one of many with a right to claim back unlawful charges.