Posted on 6 October 2008
CLAIMING BACK MIS-SOLD PPI POLICIES
CAN I CLAIM?
When you took out a loan you probably did not even realise that there was Payment Protection Insurance (PPI). It was the banks, brokers and other lenders who pushed the sale and therefore the Payment Protection Insurance (PPI) was a “secondary purchase.” A strong indicator that the Payment Protection Insurance (PPI) has been mis-sold is if one or more of the following took place:
- You were not aware of the total costs of the PPI
- You had a pre-existing medical condition that was not covered by the PPI
- You were unemployed at the time of taking out the PPI
- You were or was shortly to become self-employed when you took out the PPI
- You were retired or close to retirement when you took out the PPI
- You were led to believe PPI was compulsory and/or it would enhance your chances of getting a loan
- You were pressured into buying PPI
- PPI was added without your knowledge
- You had alternative insurance which gave you adequate cover
Even if the Payment Protection Policy was sold to you correctly, nevertheless if the Bank or other lenders failed to incorporate the costs of the PPI correctly within the loan agreement, the entire loan and the insurance can still be deemed to unenforceable under the Consumer Credit Act. Providing the cost of the Payment Protection Policy and/or the loan is over £5,000 we can help you on a No Win, No Fee, basis.
Some Particular Examples of Wrongful Mis-Selling
Sold a Single PPI Policy
Many loans that are sold are tied in with an up-front PPI policy that is added on to the loan. This is probably the most expensive type of PPI policy sold as you are charged the full rate of interest over the term of the loan. Also the cost of the PPI policy itself loaded with the Bank or other lenders’ commission so is over-priced as compared to others on the market.
Some policies can cost as high as 40% of the loan and if you cancel the PPI policy early you do not receive the full amount of the unexpired term back.
Example of a Loan from One Loan Provider with PPI
In one case a person who took out a loan with for £25,000 over 10 years was sold over the phone a PPI policy which costs over £15,000 including interest. Of the £15,000 the sum of £4,000 was in interest charges alone. The loan company did not advise our Client the cost of the PPI policy. They disguised the true amount by simply advising our client of the total monthly repayments. They did not provide her with a comparison with or without the PPI policy.
If you buy a PPI policy independently from the Bank, broker or other lender, you will often find that the cost is much cheaper. Also the independent PPI policies that can be purchased will allow you cover on a “pay-as-you-go” basis so you can stop paying for the PPI policy at any time without penalty and you do not have to pay the interest charges.
Medical Conditions
If you, prior to being sold Payment Protection Insurance (PPI) had suffered from one or more medical conditions that could affect your ability to work such as a bad back, stress, cancer, angina, heart problems etc the Payment Protection Policy would be worthless. Insurance laws provide you to declare all relevant factors but this is difficult if the Payment Protection Policy has been mis-sold to you and in worse cases misled.
Sick Pay and PPI
Your Employer may provide sick pay in the event of being unable to work. Some Employers, especially in the public sector offer packages that will pay you your full wage for several months. As many Payment Protection Policy will pay out for a limited time only, there is simply no need for PPI, it is costly and too expensive.
Employment Status
Often there is a failure on the Bank or other lender who sell you a Payment Protection Insurance (PPI) to ask relevant questions about your employment status. There are many exclusions under the PPI policy and if the proper checks have not been made then you cannot claim against it. The common exclusions are where you are:
- Self-employed
- Planning to return to full time education
- Being made or due to become redundant
- Due to give up work to have a baby or take maternity leave
- Working less than 16 hours per week
- On a temporary contracts
- Due to retire
Wrong Age
Again there is a failure for the Bank or other lender who sold you the Payment Protection Insurance (PPI) to ask you or consider your age. This is because many Insurance Policies have an upper retirement age limit of 65 - 70. If the loan extends beyond your retirement age the policy is highly likely to be mis-sold and you may have a claim.
GET HELP NOWI
n our opinion about 7 out of 10 loans sold with Payment Protection Insurance has been mis-sold for various reasons. If you have been sold a Payment Protection Insurance policy linked to a loan above £5,000 use our contact form, call us for FREE 0800 083 0626 or engaged our live online confidential chat facility (see top right hand side of this web site).
R James Hutcheon Solicitors
The Heath Business & Technology Park
Runcorn
Cheshire
WA7 4QX
This Firm is regulated by the Solicitors Regulation Authority
