Can I Reclaim My PPI?
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If you have taken out a financial product in the last ten years such as a mortgage, personal loan or credit it is almost certain that you were sold payment protection insurance from your lender. PPI ideally covers your ability to repay your debt should you find yourself in difficult circumstances such as injured or unemployed, however, the lenders found a loophole and have been selling PPI to customers who were not eligible for the cover or who did not fit the particulars of the PPI they were sold.
For the past decade, lenders have raked in an estimated 3bn by using the loophole and avoiding payouts at all costs. Although arguably getting by on technicality financial watchdogs have deemed them to be in breach of financial practice. Many high street lenders have been slapped with fines of up to 7m and stand to lose much more from refunds.
The scale of this fiasco ballooned with the help of bank salesmen who would often demand you take out the PPI if you wanted the loan, an obvious lie, in order to boost their commission. In some instances the small print was the only mention of the compulsory PPI that would be added on to your product but not mentioned in your quote, by signing the contract you implicitly agree to pay for it.
Some people are ineligible for PPI by their very definition and have still been paying for it, for example if you are over the age of 65 you will not be able to utilise PPI as you are above the age of retirement. Anyone who has paid for PPI over this age is legally entitled to a full refund.
Self employed consumers are considered to be in a less stable financial position than someone in full time employment so you will not qualify for payment protection insurance, however, your lenders will be more than happy to offer it to you with no intent to pay it back to you.
If you have a historical medical condition the chances are you will be considered a high risk individual and would not be offered the insurance as you are more likely to be off work on medical grounds. As you can guess, the banks will be more than happy to sell PPI to you even with a medical record in their hand and you have no chance of using the cover.
Anyone who has been mis-sold PPI like this or in any other fashion is more thank likely to be entitled to a refund, although you will have to chase the banks for this and it is often easier to enlist a legal professional to do it for you.
Article Source: Articlelogy.com
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