PPI for Loans
PPI for loans can be a useful product, but it has historically been mis-sold to consumers as it is much easier to sell payment protection insurance against a loan. Some loans have been identified as to run as long as five, or even 10 years, and people may have left or been out of work by the end point. Therefore, people may have felt pressurised into purchasing PPI for loans.
Similar to that of PPI for mortgages, PPI for loans were often sold without the client ever being aware, leaving you with a service you did not need and, subsequently, did not know you were paying. If your loan was ever topped up, some lenders even applied a new PPI policy to the loan, without asking if you wanted it.
Examples of Mis-sold PPI for Loans
- Payment protection insurance policies are not compulsory; you should always have the option to opt-out. Many borrowers were not made aware of this and were even told that purchasing PPI would increase your chances of your loan being accepted.
- Similarly, if you at any time felt pressurised into purchasing a PPI policy, that is an example of mis-sold PPI for loans.
- Your PPI policy should have been outlined separately to that of your loan.
- The lender, or sales person, should have detailed alternative covers, rather than selling PPI with little information.
- If you were off sick or the lender did not ask about the details in your sick pay policy from work, you may be eligible to claim compensation.
- PPI for loan policies included many exclusions, and you should have been told of all. You might not have needed the payment protection insurance policy when it was sold to you.