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SCOTTISH PPI CLAIMS

Scotland Wide PPI Specialists

Can Your Bank INSIST You Take Out Insurance Like PPI?

13 May 2019

Lessons must be learned from the PPI mis-selling scandal and one clear lesson needs to be around consumer rights and how they relate to buying financial products. Many people 'agreed' to PPI because they assumed that the bank could insist they bought their own insurance products. But this isn't the case? But where do you stand when it comes to buying insurance products?

Piggy -bank

Many changes

Many changes have been ushered in as a result of the PPI mis-selling scandal to protect the consumer and to hopefully prevent mis-selling of a financial product in the future.

But, some people are surprised to find that on turning to their bank or lender a loan were told they had to have an insurance policy to protect repayments on the debt. But they insisted that you bought theirs: PPI.

The changes to how insurance products can be sold

Banks and lenders can sometimes insist that you take out certain types of insurance policies, for example, as part of a mortgage. This is because there are large sums of money involved and they want to see you are serious about protecting their investment.

Sometimes, the way they go about doing this is not correct which places the customer under pressure but also gives them not-quite-right information.

The amount of money you are borrowing

Frequently, it depends on the amount of the loan. The more money you ask to borrow, the more likely it is that you will be asked to protect the loan in the case of you being unable to make repayments.

BUT…

  • You are able to shop around- just like when you buy car or home insurance, shop around for the best deal. Use the various comparison sites to get the best deal for you. You may, for example, find that the bank insists that you take out their own PPI that includes redundancy cover. But you now know that they cannot do this.
  • The bank can sell you their own brand of PPI- but there must now be 7 days between the date the loan is sold to you and the date they can offer you their PPI policy. It has to be said, the sale of PPI on loans etc. is now largely discouraged.
  • If they tell you that their PPI policy is the right one for you- they must tell you why and do so in writing.

But, can I claim PPI compensation?

Yes, you can if you have reason to believe you mis-sold the policy in the first place.

There are many reasons why PPI was mis-sold to customers: it may have been added to your account without your knowledge, for example. Or you may have been under the impression you had to buy it. There are many other reasons and our team will be happy to help you.

Can Scottish PPI Claims help you?

Yes, we can! We can help anyone with PPI on their account or accounts - you could have more than one claim! Call us to find out more about our no win, no fee service.

 


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