PPI Scotland’s Jargon Buster!
It’s everywhere. Just when we think we understand the whole payment protection insurance mis-selling scandal, another phrase or word is added to try and baffle us.
Here we explain some key terms in our PPI Scotland Jargon Buster;
PPI – stands for payment protection insurance. It is a generic name so the insurance on your loan, credit card, store card, car finance etc. might be called something different. If the insurance policy on your account ‘promises to make repayment in the event of illness etc.’, then this is a form of PPI.
Letter of complaint – this is the letter that we construct on your behalf to your bank or lenders. It needs to clearly set out all the details relating to your PPI compensation claim from the basic information of when and where you took out the loan through to why you believe you were mis-sold the policy.
Mis-selling or mis-sold PPI – this refers to HOW the PPI was sold to you. Many banks and lenders confronted customers with PPI at a time that many financial pundits say people are emotional and ‘vulnerable’; in other words, when they are applying for a mortgage or finance for other major, important purchases.
Mis-selling reasons – customers must prove they were mis-sold PPI. Here are some examples;
- You were led to believe it was compulsory
- PPI was added to your account without you asking for it or consenting to it (this happened with many credit card accounts)
- The term of the PPI did not cover the entire term of the loan
- You were advised to take PPI – although it clearly did not ‘match’ your circumstances
- You were self-employed, retired or a student when PPI was added to your account
- You were not made aware of the specific exclusions under the policy
Single premium policy – some PPI policies were charged as one single payment upfront, at the start of the loan. This is now no longer allowed as people also found that if they cancelled the policy, they did not receive a refund of the money they had already paid. This type of PPI policy also significantly increased the debt customers owed as it interest was charge on the amount added to the loan as a result.
Terms and conditions – these are the ‘rules’ that are often referred to as ‘the small print’. They contain all the things that are and that are not covered by the insurance policy in question. Many self employed people, for example, were surprised to discover when they tried to make a claim for a short term ailment that prevented them from working, that the policy only covered them if they ceased trading COMPLETELY. Many people found this unacceptable and would not have taken out the policy if they had been made aware of this.
If you think you have a PPI claim, then contact PPI Scotland today. As one of Scotland’s leading claims management companies, specialising in PPI claims, we have hundreds of happy customers, enjoying their PPI compensation.