'Reclaim your PPI.' We've all had the texts, emails, phone calls and seen the ads on TV, and in newspapers and magazines. PPI is everywhere. But what is it all about?
PPI stands for Payment Protection Insurance and is often provided alongside loans, credit cards, store cards, mortgages, car finance, overdrafts, catalogues – any form of credit. The insurance protects payments on these products if you are unable to pay due to job loss, accident or sickness.
It can be a good product in some circumstances, but the problem we have at the moment is that banks were mis-selling it to customers for years.
If you were mis-sold PPI, you can ask for your money back, easily and for free. However, the Financial Conduct Authority has announced plans for a time-bar on claims, so you should check now before it's too late.
What counts as mis-selling?
The PPI seller must check that the product is suitable for you at the time you get it. In many cases they did not do this, which is why financial regulators fined several banks and told all of them to pay back the money.
Typical examples of what went wrong include:
- people being told the cover was compulsory to get a loan
- it being added without permission
- unemployment cover being unnecessarily sold to the self-employed, unemployed or retired
- failure to give information on the exclusion of pre-existing medical conditions.
In general, you can complain if they did not give you the correct information about the policy.