People sometimes think they have been mis-sold PPI (Payment Protection Insurance) and therefore they are looking to claim their money back. Due to the fact that Bankers’ associations have given up their legal fight over this mis-sold PPI, millions of clients could be entitled to some kind of compensations, because otherwise, this scandal could cost the whole banking industry too much.
First of all, how the person could find out whether his/her PPI was mis-sold? Nowadays it is not possible for the lenders to sell PPI at the time when the one has taken out the credit card, finance package or a loan. But, in the past it was possible and quite common. So, why there have been so many issues with these insurance products? First of all, this insurance product contains many exclusions and usually they are not explained. So, many clients paid for PPI even if they were no eligible to make a claim on it. In fact, even today a lot of people have problems with finding out whether they are eligible or not to make claims on their PPIs. Check out all the terms and conditions, but keep in mind that commonly those who are not working: unemployed, students, house wifes/husbands or even self-employed are excluded and PPI will not cover them. If you have medical conditions (back pain, stress etc) that might make it hard for you to work, those conditions are also excluded from PPI coverage.