What Makes a Payment Protection Insurance Contract Void
There have been numerous cases of PPI mis-selling, which have also prompted the Financial Services Authority (FSA) to look into the matter and release updated regulations about making claims and the eligibility of a client for such.
If you are about to purchase such a policy yourself, or are contemplating on filing a complaint, do be guided on the the following points that help you determine whether you are qualified and should ask for a refund from the insuring company:
- You were pressured by an agent into buying the said type of coverage.
- The deal on the aforementioned was concluded even though you did not specifically agree to take it yet.
- You were not told or informed in clear terms, before the sale was made, that the product was optional.
- The firm did not make sure that the PPI arrangement was suitable to your needs (considering the cost, necessary exclusions, limitations, conditions, and level of cover) or that it was something for which you were eligible to claim benefits.
- While your policy was being put in order, you were not told that parts of the plan you bought didn't apply to your circumstances.
- You were not told way ahead of time before making the purchase about the overall separate cost, and not just the monthly rate, of the insurance.
- You were given inaccurate or misleading information about the scheme you were about to get.
- You paid for an arrangement wherein its total cost, including the interest, exceeds the benefits that could be compensated under the said contract.
- The firm did not made you understand that, in a single premium coverage, the term of the provision was shorter than that of the credit agreement, as well as what happens after having such a mismatch (when applicable).
- The company also did not advise you that you wouldn't receive a pro-rata refund should you refinance or repay the loan, or cancel the policy after the cooling-off period. This does not hold for all kinds of PPI, only the ones to which this applies to.
In short, a deal is generally invalid where there is a lack of consent with one among the 2 agreeing parties. The abovementioned points were just the specifics. For any mis-sold insurance, it has been already void from the very beginning. So, do be careful that you understand the fine print fully before signing the dotted line to avoid unfortunate consequences.