Payment Protection Insurance (PPI) is a form of insurance that has hardly been out of the news in recent years. It is a widely used product, which lenders sold to borrowers. The point of the insurance was to provide borrowers with a means of repaying a credit agreement in the event that they lost their job or were faced with a situation whereby they could not keep up their repayments.
On the face of it, PPI seemed like a good idea and as a result, millions of borrowers took out these policies. However, UK based banks and building societies have had to repay millions on pounds in premium repayments to borrowers on the basis that these policies have been mis-sold.
It had been thought that the stream of claims was drying up. However a recent case may have re-ignited the interest in this area.
To date, borrowers have only been able to claim compensation on the basis of the PPI polices being mis-sold. However a recent case has held that a couple can also reclaim commission which is an element of the costs involved in this insurance that lenders have rarely declared to borrowers. The interesting thing about this case is that the policy had been legitimately sold so it did not fall into the usual ‘mis-selling’ category.
It will be necessary to go to court to make such a claim. The deadline for making a PPI claim remains end August 2019. It will not be possible to re-open claims that have already settled.
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