The British Bankers’ Association has opted to not appeal a court ruling on the mis-selling of payment protection insurance (PPI). The major banks have already started putting aside billions of pounds in order to pay out to customers who were mis-sold the insurance policies.
Adam Scorer, head of external affairs at Consumer Focus said: “Finally the banks have agreed to face the music on the issue of PPI. The entire episode is an embarrassment for our High Street banks - it is now time to wipe the slate clean, pay up and look to learn lessons for the future.
“Refunding billions of pounds to millions of people will be a mammoth undertaking and to get it wrong would add insult to injury. We are calling on the banks to put aside the resources that are going to be needed to ensure people get their money back quickly and efficiently,” he continued.
There’s a good chance that you might be reimbursed if you’ve been mis-sold PPI. Here are just a few scenarios in which you may have a case.
You were self-employed at the time
PPI is intended to cover the cost of debt on loans or credit cards if the borrower falls ill and is unable to work or is made redundant. But those who are self-employed aren’t entitled to claim on PPI, so it’s essentially pointless for those who are their own boss. This also applies to people who are retired.
You already had measures in place
If you had an insurance measure in place – such as income protection policy or a sickness or redundancy package from your place of work – then there would have been no need for you to take out PPI.
You were required to have PPI as part of your terms and conditions
Whilst companies are permitted to insist on borrowers having some form of PPI, it doesn’t necessarily have to be from the company which provides the lending facility.
You didn’t know you were sold it
When you were sold your loan or credit card, it PPI might have been added without you knowing. It’s the seller’s responsibility to prove that you agreed to the insurance. So if you can’t recall being asked or anybody mentioning it, then you may have a case.