Payment Protection Insurance, or as it is known more commonly, PPI, was intended to cover loan repayments should you be unable to work as a result of injury, illness or loss of employment. Recently though it has been discovered that many who took out PPI did not really need it and others were sold it without actually being told or asked. This left a great deal of people paying loan payments which were much higher than they actually needed to pay.

Many people who have or had PPI were not even told that they had it and the amount was simply added to their payment, sometimes without them even being aware. When loan terms were offered with PPI the bank or company offering the loan would often describe the loan as ‘fully protected’ rather than asking the person if they wished to take out PPI in case they needed it.

PPI actually added a very large amount onto many people’s loans – with between 15% and 30% commonly added onto the loan amount. In most cases this amount was more than the interest, and it would be almost entirely profit for the bank or loan company. Whilst in a lot of cases the PPI wasn’t needed, in the cases where it was people were still paying out many times more than they needed to.

Organisations and firms like Brunel Franklin are offering guidance and support to people who might have been mis-sold PPI so that they may be able to claim back a refund.

The majority of PPI mis-selling came from face to face and telephone sales, where advisors didn’t outline to borrowers whether they really needed PPI, how much PPI would cost them or what level of PPI they needed. In some cases borrowers were even told that to take out a loan it was essential that they also purchased PPI – even if it wasn’t. In these cases the reclaim success rate is very high.

“In all cases it’s the responsibility of the vendor to ensure the policy they sell is the right one for you at the time of sale. If you didn’t realise exactly what you were being sold and you have been paying for PPI premiums that weren’t fully explained, there is a chance you may have been mis-sold a PPI policy,” said Sally Bowyer, Managing Director of Brunel Franklin.

“Whilst the rules have been tightened up to prevent the blanket mis-selling of PPI, in theory, the problem is historical and people can often apply for a refund of several years’ worth of premiums plus interest, if they were mis-sold a PPI policy,” added Sally.

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51