Payment protection insurance or ppi was an insurance plan generally sold alongside loans, on the reason of giving peace of mind, by ostensibly covering monthly loan repayments in the event that the policyholder was unable to work due to severe illness, accident or loss of employment. However, mis-sold ppi frequently occur to people.
You might have been mis-sold ppi if your policy duplicates your cover like through employment contract or benefits and other policies. You might also have been mis-sold ppi if you cannot cancel it at anytime you want or if you’ve been capable to cancel it and incurred a penalty. Your policy have also been a mis-sold ppi if you’re not eligible to make a claim. Mis-sold ppi also transpired if the policy sold to you was very costly. A large amount of policyholders also have their mis-sold ppi complaints because the term of the cover failed to match the term of their loan that has been insured.
Single premium ppi policies have been usually mis-sold to people. First, the cover normally limited to a period of 3 to 5 years. So this means, if you are taking a 10 year loan out, you can only make a claim within that 3 to 5 year period. Even though you will still be paying off the ppi premiums on the duration of the complete loan, like 10 years, same as the term of your loan repayments. Second, the policy is so pricey. This is because the premiums are seriously inflated, which makes it incredibly profitable for those selling it, like the banks and lending companies.
Over 50% of what you pay sometimes gets into sales commissions to the sales representative or financial institution which are promoting and selling it. Third, the costs of the benefits that can be claimed under the policy are often similar to the cost of the premiums you pay out. In other words, if would have been better for you to have put the money to one side and drawn upon if you needed it, like if you were unable to work if you fall sick or loss your work, re-utilizing the money after the loan term, if you had not needed to drawn on it.
Mis-sold ppi takes place when you were not advised of the true cost of the policy. It can also be a mis-sold ppi policy if the term was shorter that the term of the loan it was insuring. Most of the policyholders complained that their policy has been mis-sold to them because the exclusion clauses were not entirely explained. If you were self employed, and the sales representative wouldn’t tell you that you were not totally covered, then the policy was also mis-sold to you. If you think that you have been mis-sold ppi then begin claiming your compensation now.