Despite thousands of Britons being signed up to Payment Protection Insurance (PPI), few will have known exactly what it was upon receiving the policy. This is because many of the country's leading banks sold the plans to their customers without them knowing. If you believe you have been mis sold PPI, then you have a right to make a claim and to win back any lost earnings. First of all, you'll need to know exactly what it is.
PPI, otherwise known as credit insurance or loan repayment insurance, is a form of insurance policy that covers the consumer's loan repayments should they become victim to certain happenings. These include falling ill, being involved in an accident or becoming unemployed through no fault of their own.
This period will typically last 12-24 months, or shorter; depending on the agreement or loan amount. However, on some cases an agreement won't have been put in place beforehand; which leads to thousands attempting to claim back PPI each year.
Even some of the major brokers manage to make key errors when contacting their customers about PPI, which is why so many policies get mis sold to consumers each year. For example, their phone operators are under obligation to ask certain questions about the customer's situation, as there are many that cannot be sold PPI.
Simply put, if you're not earning money, PPI cannot be sold to you. The same applies if you're self-employed or working part-time. If your circumstances have changed since then, not to worry, as any claim you make will be based on your situation upon receiving the policy.
You can also make a claim if the policy was hidden from you by the broker - in the small-print of a loan agreement for example - or if you were told that investing in a policy is required to take out a loan. PPI is by no means a necessity, no matter what an operator tells you.
Lastly, many people actually hold a policy through their own company's insurance cover, so it's always worth checking what you already have. Re-selling is prime example of bad practice by banks and loan companies, which is why so many claims are successful each year.
Now you're aware of the definition, you can start to claim back on what's rightfully yours.