If you would like to reclaim Payment Protection Insurance (PPI) in Scotland, contact out sister company: PPI Scotland.
Don’t miss out! Make sure you claim back your PPI compensation in Scotland
Many years ago, there was a protest against protection payment insurance (PPI) policies that banks and lenders were selling to customers.
Customers approach financial institutions for loans of a regular basis, across the country. Occasionally, these loans are for the big, exciting things in life such a mortgage for your first home. For other people, acquiring a loan is about buying the dream car that they have always wanted or for modernising their home.
Other customers approach banks for help with debts, acquiring consolidation loans so that they can pay off more cumbersome loans, making their budgeting easier.
However, just at the time when a customer was focusing on the more exciting things in life, the bank slapped on another layer of payment – this was in the form of a monthly premium to cover PPI.
On the face of it...
...PPI sounds a good idea. It is an insurance policy that protects the repayments of loans, mortgages or credit cards should you, the account holder, be unable to continue with repayments due to redundancy, unemployment or if you were unable to work due to illness.
However, there are several issues with PPI:
- Poor value for money – some premiums were extortionate, making the policy incredible expensive for the very little protection it offered
- Terms and conditions – are strict and narrow. Neither were these important exclusions highlighted to the customer. For example, existing medical conditions were not covered under the PPI policy.
- Awareness – many customers were not made aware they had purchased PPI. It was sold alongside the loan etc. and eventually, was taken for granted that every customer would have PPI. Some credit card customer, for example, had PPI added to their account without their permission.
- Dodgy sales techniques – along with not making customers aware that a) they had bought PPI and b) that it was of no use to them, many financial institutions also employed a series of dodgy sales techniques. For example, some customers were told or it was implied that they were more likely to be successful if they agreed or accepted PPI on their account.
- Created or sustained debt problems – some of the PPI premiums charged on accounts were disproportionate to the loan they were covering which simply added to the debts problems experienced by so many customers.
Making a claim is straightforward
Customers are required to submit a letter of complaint to their bank or lender, stating on which accounts they had PPI and why they think they were mis-sold it. From this information, the bank will make a decision either compensation the customer or rejecting their claim. Customers at this point, can either accept this or refer their claim to the Financial Services Ombudsman.
Payment Protection Scotland is a specialist claims management company ho will offer you honest, impartial advice on your potential PPI compensation claim. Contact them today for further information on their great service!
Please contact us today for more information on any aspect relating to Payment Protection Insurance (PPI). We are happy to provide information on all aspects of PPI and the claims process.