How Can I Tell If I Was Mis-Sold A PPI - Checklist

PPI is the abbreviation, used by financial institutions and insurance companies, for Payment Protection Insurance. PPI is an insurance that is sold along with the loan that you get from a financial institution. PPI is an optional insurance that the loan lending companies have been selling along with the loan that they disburse. This insurance is supposed to cover the period in which you are, for any reason like accident, illness or loss of income, unable to meet the instalment payments for the loan. In some cases, PPI was being sold in one go which means that you had to pay the insurance premium in a single upfront instalment. In other cases, PPI premium was being charged in instalments over a period. The loan giving companies' agents would sell PPI as they were getting commissions from the insurance companies. In certain cases, the agents would reduce the interest on a loan as the company was being paid by the insurance company to sell PPI.

It's only recently that people have discovered that they were being sold PPI when they did not even need it. This implies that PPI was miss-sold to them. Now, how can you determine if PPI was miss-sold to you or not? Here is a checklist that will help you to determine if it has been so:

• Did the person who was processing your loan application tell you clearly that the insurance was optional?

• Did the loan adviser tell you about any significant exclusion in the insurance policy?

• If you paid PPI, did the loan adviser tell you that you would be making a single upfront
payment and the interest would be added to your loan repayments?


• Single premium PPIs last for five years. If your loan repayment was more than this period, did the loan adviser tell you about it?

If all the terms of the PPI were not communicated to you or are not written in the insurance policy then a PPI has been you have been miss-sold a PPI. However, if this information was communicated to you or was written in the fine print of the contract then PPI has not been miss-sold in your case. Before entering any financial agreement, you must know exactly what are you getting into. No loan adviser is going to tell you that you are at an excellent credit risk, and his or her institution is eager to give you a loan. They will try to sell you PPI on the top of it so that they can earn the extra commission.

Now, whether you were miss-sold a PPI or not can become a debatable point. It will be your word against the loan company adviser. If you did sign up for the PPI policy then you will have a very weak case. In fact, you would not have a case of being conned into buying PPI. Therefore, before you think of suing the company, you should check the agreements that you signed. The PPI may also be listed as a part of your loan agreement. If you were not told that the PPI was an optional policy then you can bring a case against the company. Nevertheless, be sure you have proof of this.

Simon P Jennings is a personal insurance consultant. To make guaranteed you may contact him today at