PPI was widely mis sold to customers either at the point of sale or at some point thereafter. All the benefits would have been explained but eligibility or appropriateness would not have been determined. Here is a list of the most common situations when PPI would have been mis sold:
- The borrower would have been told that the loan would only be approved if they took out PPI alongside the loan
- The borrower refused to take out PPI but it was added to the loan anyway
- The borrower was not even informed that PPI had been added to the loan
- The borrower was not informed that the salesperson would receive commission for selling the product
- The terms and conditions, particularly exclusions, were not explained to the borrower
- The borrower was ineligible for the cover because they: was unemployed, in part time employment, a full time student, suffering from a pre-existing medical condition, or was of a retirement age
- The borrower was not offered the option of a monthly premium policy
- The borrower was told that PPI is compulsory
- The borrower was not asked about their medical history
- The borrower was not asked about any existing cover that they may have had in place
- The borrower was not a public sector worker who was entitled to full sick pay from their employer e.g. a police officer or a nurse