Mis Sold Payment Protection Policies
One of the major complaints levelled against PPI is that altogether the ultimate cause of mis sold payment protection policies is that they rarely provide cover for the people who need it the most.
One survey, by The Competition Commission in 2008, found that just 15% of people
who tried to use their loan PPI policy received a payout. The figure for credit
card PPI was even lower at just 11%. Fortunately, UK PPI guidelines as established by the Financial Services Authority allow for reclaiming PPI when it can be authenticated that the policy was mis sold.
Exclusions Major Cause of Mis Sold Payment Protection Policies
Although it would stand to reason that the average consumer would understand that they shouldn't buy a payment protection plan if they fall into any of the exclusions categories on the policy. There are however certain reasons why those consumers may not know about the exclusions on the policy. Keep in mind that the lender
may not have a policy to present to the consumer until they have purchased the
plan but notwithstanding, that lender has the responsibility to disclose any and
all pertinent details which could affect whether or not the consumer wanted to
purchase (or is able!) to purchase cover.
Some Common Exclusions
Whilst you may believe that exclusions are obscure reasons for denying cover, some are pretty obvious. Since payment protection is meant to go into effect when the policyholder is unable to make payments due to loss of employment or illness, anyone who is a temporary worker, unemployed, self employed or of retirement age 65 or older would be automatically excluded. These are obvious reasons for exclusion and the lender should have explained that to the consumer instead of trying to mis sell cover! Then there are other exclusions such as pre-existing illnesses and women who are pregnant and due to take maternity leave.
If it can be proven that you were mis sold PPI you are eligible to file a claim back of bank charges.
The point in all this is that mis sold payment protection policies are now being closely monitored by the government so that consumers have some recourse to claim back any money which shouldn't have been paid in the first place. If you would like help claiming against mis sold PPI talk to a claims
handler at Belmont Thornton on 0207 471 2000.
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