How Do I Know If I Was Mis Sold PPI?
Record numbers of PPI claims have been made this year, resulting in profit warnings from Banks, Santander had to set aside seven hundred million Euros to deal with expected claims leading to a share price drop. With these record claims going on, you are probably wondering, was I mis-sold PPI, can I make a claim. In the below article we list a few scenarios to see if you are eligible to make a claim, but in all cases you need to seek independent advise.
What Is PPI?
Before you do anything else, you need to make sure that you understand what PPI even is. This stands for Payment Protection Insurance. It is a type of policy that can be used to help you make your payments when you do not have enough money. You will have to pay a certain amount of money to have the coverage, adding to your bills, but it is worth it. If you do not make a payment, you will incur interest. You can also ruin your credit. Paying a small amount for PPI can actually end up saving you a lot of money in the long run.
For example, maybe you will have a mortgage on which you need to pay nine hundred dollars every month. If you miss a payment, you need to pay interest on the total amount that is left on your mortgage. If you find yourself in a difficult position one month, you might be in danger of not being able to pay. Maybe some unexpected bills will have come up that have made it hard for you to make ends meet. You can then use the insurance coverage to provide the money that is needed for the mortgage.
Do You Have Coverage?
The most basic thing that you need to know is if you have the coverage that has been discussed above. You can get this when you take out a loan. You can also get it, as mentioned, when you take out a mortgage on a home. Furthermore, you can get it when you have a credit card. Anything that provides you with money that you then have to pay back can come with PPI. You should check to see if you have it already. If you do not, and you want to file a claim, it is too late to get it.
What Type Of Claim Do You Want To File?
There are two types of PPI claims that are being filed. First of all, people are trying to use the insurance as it was intended to be used. If you cannot make a payment – and you can prove, financially, that you cannot do it – then you are eligible. It is that simple. You can file a claim and then make a payment again the next month.
You may also want to file a claim if you have been mis-sold your coverage. If the bank told you that you had to have the coverage when you did not want it, they have to pay you the money back. This is also true if they did not explain all of the different terms and conditions to you.