The PPI scandal broke four years ago. Many people had been mis-sold personal payment insurance when it wasn’t applicable. For those that were caught up in the banking scandal, they found that they were entitled to money back. Of course, not all PPI plans were mis-sold. If you think that you were involved in the mis-selling of this product, it’s time to start looking at ways that you can claim this money back.
Let’s take a close look at PPI and your rights.
What is PPI?
PPI is a form of insurance when an individual takes out a large loan. PPI is issued to those that take out substantial loans in the event that they cannot pay the loan back. The cost of the insurance covers any shortfalls with the loan repayments.
PPI was an assurance that the loans would be repaid in the event of unemployment and illness. Many loans were covered by the PPI insurance plan. Many felt as if they had taken out the right policy to safeguard their investments.
The Issues Surrounding PPI
But, PPI is often added to loans as a guarantee. With this in mind, many people purchased PPI and did not need it. A loan provider is meant to inform you if your loan has PPI coverage included. If they don’t, it may be advisable to take out this kind of coverage.
The issues surrounding PPI is that it was often mis-sold to those that did not need this kind of policy. What is more, PPI insurance is often expensive. With this in mind, it may be worth looking through your current loan agreements. You can then see if you have mistakenly taken out a PPI policy without the need for it.
Claiming Your Money Back
If you have looked through your paperwork and have found that you were mis-sold PPI policies, you may have the right to make a PPI claim. This ensures that you get the money back for the policy. At present, there is no deadline date. Due to the ongoing issues surrounding PPI, the banks have a legal obligation to return the money. So, you can be rest assured that you won’t be out of pocket for this.
Grounds for Getting Your Money Back
If you were sold a policy that you didn’t need, you will be able to get your cash back. But, there are some grounds in which you can retrieve your money.
Self Employed: Self-employed people were often sold the policy. But, they do not need it as they cannot be covered for loss of earnings.
Credit Cards: Credit card protection was offered to many consumers that did not need it. As a general rule of thumb, credit cards come with a level of protection. As such, PPI is null and void. Do check the terms and conditions of your credit card agreement.
Mortgages: In some circumstances, consumers were sold PPI for their mortgages. But, other insurances would have covered the same terms as PPI. If you were not told that PPI would not be advantageous in this situation, you have the right to claim your money back.