Some of the ways that people have been mi-sold PPI's is fairly scandalous, so it is good to see that the balance is finally being addressed. It doesn't make up for years of mis-payments being accepted by companies, but at least it attempts to redress the balance in some way. When it comes to claiming PPI refunds or rebates, the first step is to re-examine the terms and conditions of the contract. If you do not have these at hand, you should be able to obtain a copy of the terms and conditions by contacting the company that sold you them. Some firms charge a small fee for this service, so it is important to be aware of this.
Once you have obtained the terms and conditions of your PPI, there are a number of points to consider which should help you determine if you were mis-sold the cover or not. The first point that people should consider is if it was made clear that the PPI was optional at the time of the agreement. It seems that many people were informed that there was a requirement to take out the PPI but this is certainly not the case. Each PPI agreement is optional and there should also be a cooling off period which allows people to change their mind. If neither of these options were presented when taking out a financial agreement, there is a very strong chance that PPI was mis-sold, so claiming PPI payments back would be an option.
It is also incorrect for a client to be told that the overall cost of repaying the loan or mortgage would be higher if PPI was not taken out. This is also untrue and would form the basis of someone claiming PPI payments back from the company that sold them the insurance. It is easy to see why some people would be flustered when signing up for these deals and would take any information provided to them as being the truth. However it is incorrect information, such as being informed that without PPI the repayment plan could be more expensive, that has led to the current situation.
It is also the case that claiming PPI payments back can be achieved when the sales person was very pushy when selling the product. This can be difficult to prove but there have been many instances when sales staff members have placed people into a situation where they almost felt that they could not say no to the offer. This would also form the basis of a claim to get the money back.