PPI is designed to repay your loans and mortgages when you get sick or have an accident, says the insurance’s description. However, if you’re paying £3000 for something that you’re ineligible for, it’s a waste of money. You are given the legal right to reclaim your repayments, but you will need to know first if you really have a mis sold PPI.
1. Your Financial Adviser
Financial advisers work on a commission basis and before banks re-evaluated and fixed their incentives systems, most of them wanted higher work volumes for higher incentives and commission. They may have recommended you purchase the insurance given that it could increase the chances of your financing application.
2. The Staff
The bank or company’s staff also have the same incentives as your financial adviser in the past. They may have told you the insurance is a requirement or that you could not proceed to applying for your loan if you do not sign up for the insurance policy.
3. Instant Insurance
Sometimes, banks will not advise you about an insurance policy. Instead, they will tell you because of your high (or low) credit score, you were given a free insurance policy to help you in case of any financial emergency. Inquire about this insurance. If you confirm its PPI, you have the right to make mis sold PPI claims against them.
