The Law Shop is now closed. Please click here to find out more.

Types of Mis-selling

Here is a list of circumstances under which it is deemed by law that an instance of mis-selling has taken place.

If any of these things applies to you then you may well have a very high chance of succeeding if you make a claim:

  • You were under 18 or over 65 when the PPI was sold to you.
  • You worked less than 16 hours a week when the PPI was sold to you.
  • You were employed on a temporary or contract basis when the PPI was sold to you.
  • You suffered from stress or backache when the PPI was sold to you.
  • You had an existing illness when the PPI was sold to you.
  • You were aware you may become unemployed when the PPI was sold to you.
  • You were not told about the cost of the insurance (or not told you were buying it at all)
  • You were not asked about any other insurance similar to PPI that you may have already been covered by.
  • You were told the PPI was necessary for you to get the loan.
  • You were not told that the same policy could potentially be bought for cheaper elsewhere.

As you will be able to see, many of these cases are centred around the failure of the provider to adequately communicate the terms and conditions of the PPI policy. The result of this can be that through no fault of his/her own, the customer is encumbered with an insurance policy that they are not eligible for. This is the case for those who were sold it when having an existing illness, stress or back pain and those who signed up for PPI despite being excluded due to their age or circumstances of employment. It is also a failure on the part of the seller to properly convey the terms and conditions if the buyer felt compelled unnecessarily to take out the insurance policy.

An unfortunate corollary of this, however, is that it is difficult to prove mis-selling when the PPI was purchased online, as in this case a full set of terms and conditions is usually available to the seller, so it is their responsibility to absorb them.

Have I been paying for PPI?

Nevertheless, if you have recently taken out a loan, or engaged with a financial institution in such a way that involved money, you should urgently check whether or not you have been paying payment protection insurance. You can do this by checking the relevant documents – i.e. monthly statements if you have a credit card and your loan agreement if you’ve taken out a loan.

It is common for PPI to be shown as a lump sum on the loan agreement, while for credit cards the PPI charges should show up on your statements as they are added each month.

Make a claim

If you do find that you have been paying for PPI, it is likely that you are paying well over the odds for it, and that one of the above bullet points applies, which will mean it has been mis-sold to you. You may be surprised how much is owed to you if this is the case.

Many leading banks, including Alliance and Leicester, HSBC, Lloyds TSB, Natwest and Barclays, have been found to be guilty of ‘mis-selling’ PPI and due to the volume of successful claims against them, their jiggery-pokery has been very costly. Making a claim could be the best approach to take.