Some lenders scam you into signing a PPI policy just to generate more profits on your loan. You should be ware that a Payment protection insurance (PPI) is not necessary when you have other insurance coverage. Below are some popular ways lenders lure people into signing a PPI agreement;
Taking PPI when self-employed, unemployed or retired
You might want to check the insurance cover on your PPI when you took a policy when you were unemployed or self employed. Most PPI policies have an insurance cover on unemployment and self employments which is not useful. Most PPI holders were not asked for an employment status when taking put a PPI policy. If this happened to you, your chances for claiming pack the premiums are high. You should also claim your premiums when you took a PPI policy that was above your age limit. Most PPI policies have a maximum age limit qualification
You took a PPI premium while having a pre-existing medical condition
Most insurance policies do not apply to people with a pre-existing medical condition. Only few insurance covers are made for people who have suffered from a serious health issue. Others will not pay out if you make a claim because they have rules against it. If there were rules and regulations about it when you were signing up for a PPI, you are not entitled to a claim. If you were not asked about any medical conditions or health, it counts as a miss-selling.
You thought the PPI was compulsory
Some companies may have misled people to believe that taking on a PPI policy was compulsory when it was not. Some lenders pushed the agenda of PPI application for a loan approval. If the issuer did not make it clear that the policy was not compulsory, you have a PPI claim. If you felt pressed to take a PPI policy so your credit or loan application could be approved, you are entitled to a PPI claim. Advice sales that strongly recommended a PPI without a statement on your demands and needs of the policy and a clear explanation why it is suitable for your is a strong reason for a PPI claim
The wrong insurance
Most insurance companies sold PPI policies as single premiums which lasted for 5 years. The cost of the insurance was the added to a loan you took or financial agreement. The lenders forced clients to pay interest and the money borrowed.
If your loan was longer than 5 years, and you were not advised on the coverage, you should sign up for a PPI claim. If you took a joint loan and the PPI only covers one person, it counts as a miss-sell. If you had another insurance policy before the PPI, you should also make a claim
You were not aware
If you have a PPI but you did not make the purchase, you can get a claim. Some insurance providers baited people into applying for a PPI policy agreement. Check all your financial documents to see if you have a PPI and in case you do, apply for a claim.
When you find yourself under a PPI policy, you should consider getting a claim immediately especially if you own an insurance policy with a similar coverage.