Consumer Law Blog
How do I know if I have been sold PPI?by Claims Financial 24 May 2011
The unfair mis-selling of Payment Protection Insurance (PPI) to millions of consumers has quickly become one of the biggest financial scandals of the 21st century. Recent figures have shown that the major high street banks and other financial services providers may be forced to pay out at least £10 billion in compensation to consumers that were pressured into buying insurance policies which were unsuitable for their personal needs and circumstances.
PPI is an insurance policy that is intended to cover your repayments of your debts if you suddenly lose your main source of income because you unexpectedly become ill, or if you are involved in an accident or become redundant. The problem began with many credit providers offered PPI packages which were ridiculously overpriced and completely unsuitable for the majority of consumers. They even used unfair and manipulative tactics in order to try and force a sale on people. Any consumer that was mis-sold a PPI policy can make a claim for a full refund of any premiums they have paid. The problem however, is that too many people fail to make a claim because they do not even know that they have ever had a PPI policy.
In order to find out if you have a PPI policy you should check all your loan documents and any paperwork which you were given when you applied for credit. If you have a PPI policy it should be mentioned in the paperwork, although it is important to remember that your PPI may be referred to by another name in your loan document. This is due to the fact that the scandal attached to PPI has knocked consumer confidence and banks have therefore increasingly adopted less controversial names for what is essentially the same product. These could include "Repayment Insurance", "Debt Repayment Cover", "Credit Protection Insurance" and "Card Protection Cover".
If you are unable to find your paperwork associated with your loan, you should check your bank, credit, or loan statement for any unexpected charges or deductions, which could be PPI instalments or PPI interest charges.
Finally, you will need to write to your credit provider asking them to provide you with full details of any PPI or other types of insurance products which are attached to your credit. I suggest you clearly state that your enquiry is a "Subject Access Request" under the Data Protection Act. The credit provider has a legal duty to respond to a request of this nature and will have to explain whether you have been paying towards a PPI policy, together with any details of that policy such as account or reference numbers.
If you find you have PPI there is a strong possibility that you are entitled to compensation and you should make a claim for a full refund immediately. Click here to start a mis-sold PPI claim with Claims Financial today.