This year might be your first time hearing from your lender that you have a payment protection insurance policy. The bad thing is, you do not remember whether you did consciously purchase the PPI policy during the time you applied for your loan, mortgage or credit card. If this is the case, these three signs can help you point out whether you were mis-sold your insurance policy — and these tips are still effective for 2017.
They Said It Was Compulsory
If your bank employee told you it was compulsory to go with your loan application and you purchased it in goodwill, then you were mis-sold this insurance policy. Consumers have the right to choose their insurance provider to protect their financing.
If your partner already has coverage for at least a single financing as his or her work permits and you do not need a redundant payment protection coverage, the bank employee should never recommend you purchasing an insurance policy for your financing.
Any policy sold through this context is mis-sold.
Susan Plevin’s case became a landmark because her financial adviser did not tell her about the commission he or she received. This had the UK Court penalize Paragon Finance for their failure to mention a “substantial” commission above 50% of the original value of the insurance policy. Your financial adviser and bank employee must disclose this high commission to consumers they have successfully urged to purchased the insurance.