PPI / Payment Protection Insurance and Personal Loans

If you took out payment protection insurance with a personal loan, you may be able to claim a refund.

By Michael Strauss

Loans and Payment Protection Insurance - Can You Claim For Mis-selling?

If you think you've been mis-sold Payment Protection Insurance with a personal loan, it's vital that you act now to get your money back. After the recent scandal revealed that customers were owed millions from banks over their PPI policies, thousands of people have contacted their banks to claim back the money they paid incorrectly. There are lots of reasons why PPI claimants are demanding a refund, but it basically boils down to a lack of clarity and information being provided on the part of the banks.

Payments Refunded

You might be entitled to a refund if you didn't ask for insurance in the first place, or if you were sold it with the understanding that you would be covered if certain circumstances were to arise, when in fact you weren't covered at all. Advisers are under obligation to make everything clear to their customers regarding any kind of insurance deal, but if you feel you weren't properly informed on what a PPI entailed, or worse still, you were told it was compulsory with your other purchases, then you have been mis-sold the product. It might be the case that you didn't feel you were in need of Payment Protection Insurance, but the adviser at the bank insisted that you should have it as part of the sale, in this case you would also be eligible to make a claim.

Make Your Claim Quickly

Even though insurance providers are required to check all their past customers details to make sure they haven't been mis-sold PPI, you're better off contacting them yourself if you ever want to see any compensation. Remember, there is a time limit on making a claim; from the transaction itself, you have a six year window to put in a complaint. However, if you were only made aware of the situation after that period had lapsed, you have three years from the point you were told there could be some discrepancy with your policy.

For those who have expired policies, there is still a chance you could get compensation, as the company who sold it to you might still be guilty of mis-selling it. Furthermore, if you have made a claim on your insurance, that doesn't necessarily mean it was sold in good faith, there might still be some cause for investigation. Considering the current situation the banks find themselves in with regards to PPI policies, they should be well practiced at dealing with these issues, but that doesn't mean they will go quietly all the time. Follow up on your complaint and make sure you see it through to its conclusion, otherwise there's little chance you will get any of your money back.