Payment Protection Insurance (PPI)
Payment Protection Insurance (“PPI”) may have been sold to you when you took out a loan, mortgage or credit card.
The main purpose of PPI is to cover repayments in the event you are unable to repay your loan e.g. due to an accident, sickness or unemployment.
Circumstances in which PPI can be mis-sold
You may have been mis-sold PPI if:
- You did not fully understand the PPI and the associated terms and conditions;
- The PPI was unsuitable to your circumstances;
- You had a pre-existing medical condition which meant that you were excluded from making a claim on the PPI;
- You were informed the PPI was not optional, or it had been added to your loan or credit card without your knowledge; or
- The total cost of the PPI policy was not explained to you.
In some cases, you may already have insurance in place to protect your repayments. In an advised sale, the lender is obligated to assess whether PPI is suitable for your circumstances, based on any existing policies that you already have in place.
Claims against the underwriter
Your advisor might not have been regulated or may not have come within the jurisdiction of the Financial Ombudsman Service at the time of sale. If this is the case, it is not necessarily the end of the road. You may be able to pursue a claim against the underwriter of the PPI policy. We have successfully undertaken a number of claims against PPI underwriters, recovering substantial amounts for our clients.
When a PPI policy is sold, the advisor will usually receive a commission payment. If a commission payment was made, the advisor is required to obtain your consent prior to retaining this. If they failed to do so, you may be able to recover any commission received on the basis that you did not consent to the commission being paid.
How we can help
Our team of specialist banking and finance lawyers can assist you with the assessment of your claim and advise you on the best avenue to seek compensation whether it is via court proceedings, a complaint to the Financial Ombudsman Service, or a complaint to the Financial Services Compensation Scheme