PPI mis-selling scandal and the impact of personal loans

Have you been mis-sold Payment Protection Insurance (PPI) along with a loan? Do you feel a financial institution disappointed you? Lots of people have already successfully pursued PPI claims against their bank or building society and you also could become one of them.

PPI is an insurance policy connected to loans as well as other financial products (like credit cards, store cards, mortgages and hire purchase agreements) that covers the policyholder should they become unable to work because of accident, sickness and unemployment (ASU). PPI is controversial though, as it has often been mis-sold by banks and other financial institutions.

Many financial institutions have been fined for failing to sell these products correctly and, because of this many people have made PPI claims for compensation. If you acquired a loan in the last ten years, there's a good possibility you will have been paying PPI premiums in your monthly repayments.

Lots of people are unaware their personal loans contain PPI premiums and that it was merely an optional extra. You didn't need to have it but many people were totally unaware that this was an optional extra and not terms attached to the personal loan or credit card. A great number of customers were typically not even advised about it, the salesperson would earn commission payments, and your money might have been quietly removed from you without you knowledge.

Those that attempt to claim under this sort of insurance policy will often be turned away due to complex small print. PPI prices can be highly excessive and charges might also contain high interest charges if lenders put insurance fees in to the overall personal loan total.

You can try and claim back money that is yours rightfully by starting a PPI claim against the provider that sold you the PPI cover if you believe yours was mis-sold to you. It could be valued at thousands of pounds, and don't forget you could claim back PPI even when you have previously settled the loan.

You can approach your PPI provider directly in a bid to claim back your PPI premiums or go to a third party who can carry out a claim on your behalf. If you use a third party it is always worth checking the company out to be sure you can trust them, so it is usually worth using a regulated solicitor who you know you can trust and shouldn’t charge you any more than other third party PPI claims companies.