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Mis-sold PPI

Payment protection insurance (PPI) – sometimes called “loan protection” – is designed to provide a consumer with insurance cover for loan or debt repayments (for example, in relation to a credit card, loan or mortgage) in the event of accident, sickness, unemployment or
(in many cases) death.

PPI is often sold by lenders when they agree to provide credit to customers – or by brokers when they arrange credit – and it can benefit some consumers.  But problems have arisen with the way the PPI market is structured and the way that some PPI policies have been sold.
In June 2008 the Competition Commission, after a 15 month investigation into PPI, found the following average insurance payout ratios apply: 

This means that, for example, for every £100 insurers charge customers on car insurance they pay out £78, on personal loan PPI it is £15 and on credit card PPI its just £11.  These substantial profits go to the lenders, not the insurance companies.

The mis-selling has often been systematic, banks forcing staff to sell these policies or face lower pay.  You may have been told the insurance was compulsory... BUT IT ISN’T!  That alone counts as mis-selling.  Plus the self-employed, unemployed, retired, those with pre-existing medical conditions, or who are covered elsewhere, have all commonly been sold unnecessary policies.

If you’ve got a loan, credit or store card, you urgently need to check whether they included insurance as part of it.  If so, without realising, you could be paying £1,000s for potentially worthless cover.

We will arrange for your agreement(s) to be checked absolutely free of charge and, where appropriate, a claim to be pursued on your behalf.

Debt Restructuring Solutions is a trading name of DRS (GB) Limited, Company Reg No 4281157, Consumer Credit Licence No 511357, Registered office address York House, 4 Sheepscar Way, Leeds, LS7 3JB.  Regulated by the Ministry of Justice in respect of regulated claims management activities. Registration No CRM17994; its registration is recorded at the website www.claimsregulation.gov.uk