If you live in the United Kingdom, you may be one of millions of people who’ve been mis-sold a payment protection insurance policy. This is a big scandal in the UK right now and there’s a good chance you could have been affected. So who exactly can make payment protection insurance claims?
If You’re Getting Double Coverage
If you have payment protection insurance from another source, whether it’s from this loan or from another insurance policy, then you shouldn’t have been sold that second coverage.
Since the second coverage is just wasted money for you, the bank couldn’t have ethically sold you that policy. That means the second policy was mis-sold.
You Didn’t Know You Were Buying PPI
If you didn’t know you were buying PPI, then you were mis-sold the insurance policy. Payment protection is something that you need to voluntarily sign up for. It’s not a clause that can be automatically wrapped into a loan agreement.
In order for you to get payment protection insurance, you need to explicitly agree to add it into your loan package. Otherwise you have a good chance at a successful claim.
You Were Forced to Buy Insurance
If you were pressured into buying payment protection insurance in any way, you have a good chance at a claim.
The most common way this is done is saying or implying that you have to buy the insurance policy if you want to get the loan. In reality, you either qualify for the loan based on your credit history or you don’t. However, since loan officers get paid commissions on loan insurance, they often try to pressure buyers into getting the policy.
It’s illegal for a loan to be contingent upon you buying a payment protection insurance policy. If you were told that you “have to” buy PPI, then you were mislead and have a strong case for getting your PPI payments refunded (plus interest.)
If you were pressured in more subtle ways, such as the loan officer repeatedly recommending that you buy the insurance, you may also qualify.
Your Income Source Can’t Be Covered
If you have a source of income that can’t be covered in the first place, then you can definitely file a claim against your insurance.
What kinds of sources of income can’t be covered?
First of all, if you work on a contract or freelance basis, you probably can’t be covered. For instance, if you work graphic design and get paid per gig, you probably didn’t qualify in the first place. Note that long-term contract work may be exempt – This depends on your policy.
If you’re retired and your main source of income is a monthly retirement check, then you also shouldn’t have been sold your insurance policy. PPI cannot cover retirement income.
If you’re self-employed, you also can’t be covered. If you own your own solo company, you shouldn’t have been sold your policy.
Part time work generally can’t be protected by PPI, unless you work a lot of hours. Even then it’s contestable. Check with your specific policy to see if you would have been covered should you have had to make a claim.
If your income falls under any of these categories, you can probably file a claim.
Your Have Disqualifying Medical Conditions
If you have a pre-existing medical condition that can’t be covered by your PPI, you shouldn’t have been sold the claim.
For instance, if you have a bad liver from excessive alcohol use, you shouldn’t have been sold the PPI. Alcohol-related injuries and conditions can’t be covered by PPI. That means that whoever sold you PPI sold you a policy that you most likely couldn’t claim with, which is illegal.
If you have a pre-existing condition that can’t be covered by PPI, you can probably make a successful claim.
These are the most common reasons for making a claim for your payment protection policy. If your claim is successful, you’ll be eligible to receive every dime you paid the insurance company back, plus interest on the money for every month that they kept your money. Note that the claim has to be filed against the company that sold you the insurance policy, not the insurance company itself. The process can generally be completed in under 3 to 8 weeks, provided everything goes smoothly.