Insurance

PPI is taken to curb the risk lenders face when giving out their loans. If a borrower happens to fall ill or gets into an accident that renders them unproductive, the PPI policy settles the debt thus minimizing the risk. The borrower is the one to take this insurance and may sometimes be wrongly sold PPI. In this case, they are within their rights to make a reclaim where the money they spent may be refunded. Not many know how this works and that is why we have this article. Here are some scenarios that will help you know whether you have been mis-sold the insurance policy.

You are wrongly sold PPI when your lender forces you to take it. A lender may refuse to offer you their services unless you take the policy. If you go through the payment without any problems and you clear everything out, then you will be in a position to make your claim.

You are also wrongly sold PPI when you find out that the lender's sales adviser failed to tell you that the loan came with the PPI policy. When this is the case, you will just assume that the company forced you to take it and thus can make the claims once you are through repaying the debt.

A lender may also assume that you want the ppi insurance policy and add it to your loan without your knowledge. When this happens, you are wrongly sold PPI and thus are within your rights to ask for a refund.

Many companies will give their employees this kind of protection insurance in case they are unable to pay their debt for some reason. Lenders might fail to check this out and add the PPI to your loan without your consent. The PPI they offer you will be worthless as your employer already has this covered. When you are through paying up the loan, you are qualified to ask for the refund as it was pointless of the lender to add the whole thing to your contract in the first place.

Making a claim after being wrongly sold PPI might save you a lot of money, sometimes adding up to thousands of dollars. The lender may reject your claim for many reasons but this doesn't stop here. There is the Financial Ombudsman Service where you can forward your case and see the whole issue to a conclusive end.