The PPI scandal has been going on for years now, yet it is still going strong. The first investigation that kicked things off began in 2005, and the mass repayment process has been going on since 2011. Yet still hundreds of millions are being paid out in compensation every month, and hundreds of new claims are coming through every day.
Many people are still unsure about the exact details of the scandal and whether they may be affected. Specifically, they aren’t sure whether they have taken out a product which may have been affected. As such, they are unsure how to begin looking into whether they have been mis sold PPI and are entitled to make a claim.
What is PPI?
PPI stands for payment protection insurance, and refers to a kind of insurance cover to give borrowers protection if their circumstances change. For example, if you were suddenly and involuntarily made redundant you would be protected. In itself, PPI is not a bad thing. The problem is the widespread mis-selling on the part of banks and lenders.
How was PPI Missold?
Lenders used various mis-selling tactics. Sometimes, people were not made aware that they had a legal right to look for better PPI rates, and instead told they had to take the policy offered by the lenders themselves. Others were given more comprehensive (and more expensive) policies than they really needed, or policies they did not need at all and could never claim from. Still others had PPI added to their policy without even being told and never knew they were paying extra for it.
Which Products Does This Affect?
The PPI misspelling scandal has affected virtually any kind of credit. Among the most common knds of credit affected by PPI mis selling are mortgages, credit cards and personal loans. Those who have been mis sold PPI are eligible to reclaim fees and charges associated with the policy if it has been active within the last six years or, of course, if it is still active.
How to Find out if You Have Been Affected
If you have taken out any kind of credit which has been active in the past six years, look over your agreements to see if PPI has been attached. Not everybody who has been sold PPI is eligible to make a claim, as legitimately sold policies are not eligible. If you are unsure as to whether your policy might have been mis sold, you may want to seek advice.