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PPI Claims Due to Wrongful Sales

A mis sold PPI (Payment protection insurance) happens when a customer is pressurized to buy insurance at the time he was taking a loan. The PPI, originally intended to protect a borrower from financial crisis in the event of an illness or an accident which may make him incapacitated to make his loan repayments, is mis sold to the borrower under manipulation.

The borrower may not really need the insurance. He may not have been told that he is buying the PPI. Sometimes he is given a false impression that the PPI is mandatory. In some cases, the PPI has been mis sold to people who are not covered under terms and conditions due to their status as self-employed or unemployed.

Competitive environment have given rise to commission based insurance sales. This is the reason a sales representative can get avaricious and try to sell PPI to you in order to have personal gains and not exactly for the benefit of the borrower. Another ground for mis sold PPI is when the borrower has not been given the choice to buy the PPI from another source. There have been cases where the PPI is also overpriced leading to mis sold PPI.