How to Know If You Have Mis-sold PPI?

You may have heard of the controversy concerning mis-sold PPI’s in the UK. Believe me it was awful. A significant number of us policyholders have found out that the insurance we have is useless as we would not be able to claim. I was self-employed at that time and boy, it did cause me a headache.

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Good thing that the industry is working really hard on this case. The banks now must trawl their records for PPI policies which were mis-sold. They informed me as well as the other policyholders that we may now be able to reclaim our premiums. The

Financial Services Authority (FSA) required the banks to contact us customers to see if there was a systematic problem in the way policies were sold. As it turned out, some of the banks’ marketing literature issued alongside all policies did not comply with the FSA guidelines. This in turn, will result to us customers reclaiming our premiums.

I really had a hard time identifying myself if I have mis-sold PPI but as I inquired and researched further, I have learned to identify them, and here they are:

If ever you want to identify yourself if you have mis-sold PPI, ask yourself these questions:
• Was the insurance made clear to you?
• Did the adviser tell you about any significant exclusions under the policy?
For example in the exclusion, you won’t be covered for any pre-existing medical condition.
• Did the adviser made it clear that you would have to pay for the insurance up front in one single payment when you took out a loan or finance agreement?
• Did the adviser made it clear that the insurance cost would be added to the loan and you would be paying interest on it when you had to pay for the PPI as a single payment?
• Did the adviser made it clear that the insurance would run out before you had finished paying for your loan or finance agreement?
My loan or financial agreement lasted for more than five years. The adviser did not told me that I have to continue paying the insurance premium even after the insurance expired. He should have told me.
• In the case that if you have bought PPI after January 14, 2005: Did the adviser try to persuade you to take it out by saying something like ‘we strongly recommend that you consider taking out PPI’?
They should have issued a ‘demands and needs statement’ to show why a particular policy has been recommended and why it is suitable for me. But they didn’t. And this is why they are ground for complaint.

If you are done asking yourself of these questions, you might realize that most of them, the answer is no. If I ask these questions myself, almost all of it are no. I have mis-sold PPI. Are you?

If ever you are, then fret not for there will still be a chance for you to reclaim your PPI. I have already reclaimed mine, you go and reclaim yours too.

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