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'No-claim PPI' affecting millions

28/05/2008

At least two million UK residents have insurance policies sold alongside loans they cannot claim on, Which? said on Wednesday.

A study from the consumer watchdog reveals a third of customers who have taken out a loan with payment protection insurance (PPI) during the last five years may fall foul of at least one 'significant exclusion' that would prevent them from making a successful claim.

They should not have been sold these policies and so are in a position to claim back their insurance premiums.

PPI often does not cover people who are self-employed, are aged over 65 or might claim for a pre-existing medical condition.

Doug Taylor, personal finance campaigner at Which? said: "We've always known people were being mis-sold PPI, but we were still amazed to discover the scale of it.

"It appears that salespeople are chasing their commissions, their bosses are chasing profits - where's the sense of responsibility to the customer?"

He added: "If you have a loan and think you might have been mis-sold PPI, now's the time to fight back. Compensation could be just a letter away."

PPI is sold alongside loans, credit cards and mortgages to cover repayments if people are off work because of illness or unemployment.

It is estimated by the end of 2006, there were six million PPI policies attached to loans.