A lot of loan companies have added some form of PPI to their loans over the last few years. The idea of this insurance is that it will protect you should you lose your income, for example through redundancy or illness. However, these policies have also been associated with a lot of controversy over recent years and many people are successfully reclaiming the premiums as they feel that they were mis sold to them.

Could you reclaim your premiums?
So, why might you be able to reclaim your PPI premiums? Well, it happens because you can demonstrate that you were mis sold the policy, that for whatever reason was unsuitable for you. So, what could this mean?

For a start, you should have been told the terms of the insurance before you took it out and equally importantly, you should also have had an option as to whether to buy it. Many customers were told that they had to take out the PPI if they wanted to take out a loan and were put under the impression that if they did not accept the insurance, that they would not be given the loan.

Unsuitable insurance premiums
Many other customers have reclaimed their PPI premiums because the policy sold to them was unsuitable. If you are self employed and your policy does not cover self employed people, then that is an almost certain case of mis selling.

Likewise, if you were aware that your employment was at risk, for example you are a seasonal worker or under notice of redundancy or about to retire, then the plan is unlikely to pay out as you are aware of the impending loss of employment. Likewise, if you are aware of an ongoing health problem that could affect your employment, then this also a reason for the policy to not pay out. Therefore, if you know at the outset that the policy will never pay out, you would probably not want to pay for it and can probably have a good chance of reclaiming it.

Could you have repaid the loan anyway?
Lastly, for now, you may also be able reclaim your premiums if you have some other way of repaying the loan. For example, if you are buying on a buy now pay later scheme and actually have the cash readily available, why would you want to insure payments?

In short, if you feel that you were sold a policy that you stood no chance of ever claiming on or would not ever be likely to have to reclaim on, then speaking to a specialist advisor might mean that you can get all of your payments back.

Written by Keith Lunt. If you want to know more about how to reclaim PPI or to start the process to claim back PPI for yourself, call in.