Posted by John 0 comments


How was PPI Mis-Sold?



Between the early 1990’s to the early 2000’s, PPI was mis-sold on an industrial scale by banks and other lenders. It was often offered to borrowers at the point of sale (when they came in asking to borrow), under the false pretense that it would improve the likelihood of their loan, credit card, or mortgage application being approved.

That is just one example of the high-pressure sales tactics that bank staff employed to get borrowers to sign up. Typically, they would explain all the benefits of having PPI, without determining the borrowers eligibility and glossing over the exclusions – of which there were many.

Worst of all, is that it was frequently added to the persons borrowing without their knowledge or consent!

Below is a list of the most common ways in which PPI was mis sold:

  • The borrower may have been told that the finance would only be approved is he took out PPI with it
  • The borrower may have been told that the his chances of being approved for the finance would be greatly improved if he had PPI
  • The borrower refused the offer of PPI but it was added to the finance anyway
  • The borrower was not asked about PPI and it was added without his knowledge or consent
  • The salesperson did not inform the borrower that he would be receiving commission for selling PPI
  • The salesperson failed to explain the terms and conditions to the borrower, often omitting key facts such as the exclusion policy
  • The salesperson sold the PPI policy to the borrower, even though he was ineligible for the cover because he was:


in part-time employment

a full time student

suffering from a pre-existing medical condition

was of retirement age

  • The borrower was not afforded the opportunity to shop research around around for a better deal
  • The borrower may not have needed PPI as he was already covered by another policy
  • The borrower may have been a public sector worker who was entitled to full sick pay e.g a police officer or nurse, and therefore was exempt from the PPI cover

The list above is not exhaustive, but it does cover the main ways in which PPI was mis-sold.

If you’re still insure and would like to speak to someone about PPI, please call o800 031 6078 and speak one of our friendly, well-trained advisers.

Leave a Reply

Your email address will not be published. Required fields are marked *