Why some people are ineligible to claim on their Payment Protection Policy?
The largest UK Banks, as well as other Credit Institutions, made an incredible gross profit margin based on mis-selling a Payment Protection Insurance to customers who were not suitable for purchasing it, and even, a lot of them were unaware of possessing it. As a result, there were a lot of complaints and people started to make claims on their payment protection policies, this became a major scandal and this forced Financing Institutions to compensate the customers who were mis-sold. The event or action of mis-selling occurs when a policy is sold to a person that was unemployed, self-employed or retired at the moment in which they acquired the policy; their age exceeded the limit that was permitted and/or a person had a preexisting medical condition when they were purchasing the protection policy. A person can be considered ineligible for a claim if they are healthy, employed and under 65 or 70 years old (depending on the limit age of the provider).
Besides these situations, there are other circumstances that could make someone become ineligible to claim their Payment Protection Insurance because the policy conditions were explained thoroughly to the customers, even if some customers later claimed that they did not understand the details in the policy, for example the coverage offered was shorter than the term of the loan and the Insurer explained that limitation, if the Credit Institution informed the customer about the addition of Payment Protection Policy PPI Fees, if the Bank or the Credit Firm left other choices open instead of purchasing the policy (they did not tell, it was compulsory), if the customer was not forced to take a specific Insurer or Provider, and if you was asked for alternative coverage such as income protection or employer illness and you acquired the Protection Policy anyways.
There are many reasons that one can be considered ineligible in regards to making a claim for a Payment Protection Policy, and for that, you need to be properly informed about the steps to take for completing this process. In many cases applying can be tedious, especially, if the Financial Institutions are assuring that the process is going to be fair and thorough. Even if sometimes it could be tiresome to read some of the “fine print” in the contracts and policies, it is always recommended that one does the due diligence before entering into any type of contract.