PPI Claim Tips: Can Banks Forward PPI As a Loan Condition?

February 15, 2018
by admin in PPI News

Yes. Your financial institution can require a payment protection insurance before your loan application is approved.

However, they cannot make a specific PPI brand the only policy that can grant application approval.

Consumers have a right to choose the insurance policy that will fulfill the lender’s PPI requirement because no single PPI will fit the unique circumstances of a borrower’s life.

Therefore, if you were urged to purchase a specific PPI policy during the time, then you have the right to earn refunds and compensation. However, if your bank required that you get a third-party PPI policy and the latter’s conditions make you an eligible beneficiary, then you do not have a mis-sold PPI.

However, make sure to read the fine print properly. Even with third-party providers, mis-selling can happen especially if consumers fail to read the policy’s conditions. Unfortunately, consumers cannot make a claim in this case because the provider had presented the terms and conditions.

Most bank employees in the years of PPI mis-selling confused customers by presenting the legitimate borrower’s requirement and forwarding a specific-brand policy that acts as a “quick solution” to the consumer’s current dilemma, which urges the latter to make the purchase immediately. This led to the huge number of mis-sold PPI policies in the last decades.