PPI is designed to cover any kind of finance agreements in the unfortunate event of you coming out of work due to an accident, sickness, or unemployment.
PPI could be added to loans or credit cards, and even certain types of mortgages, and has many different names including:
- Accident, Sickness & Unemployment Insurance (ASU)
- Loan Protection
- Card Protection
- Gold, Silver or Bronze Cover (normally provided with Northern Rock and HBOS loans)
- Loan Care
Have I been Mis-Sold?
PPI was mis-sold on an industrial scale to people who didn’t ask for it, didn’t want it, didn’t need it or could never have made a claim on it if the need arose.
PPI mis-selling happened if:
- It was added to your financial agreements without your consent.
- You were never asked if you already had a policy in place that would cover you in the same way.
- It was not made clear that the policy was optional, and not required to secure a loan or mortgage.
- Your employer sickness benefit would be enough to cover your repayments, e.g. civil servants, members of the armed forces, nurses.
- You were sold a policy when you were not in work, e.g. Student, Unemployed or Retired.
- You were not told about the many PPI exclusions which meant the policy would not pay out. The most common exclusion is if you had a pre-existing medical condition when you signed up.
Have you been “PLEVINED?”
“Plevined” is coined from the Plevin vs. Paragon Personal Finance legal case, where the Supreme Court ruled that Mrs Plevin was not informed about the amount of secret commission (71.8%) paid to Paragon Personal Finance by the Payment Protection Insurance (PPI) provider and that was unfair.Because of that ruling Mrs Plevin was entitled to some of the PPI payments that she made to Paragon, plus 8% interest per year.
The ruling has now paved the way for more people to also claim back unfair commissions paid to their lenders, even if a previous PPI claim was rejected by the lender of Financial Ombudsman Service. Even if you knew what you were doing, you were likely mis-sold it and are rightfully owed your money back.