Public Sector Workers PPI Claims
What Is Public Sector Workers PPI?
PPI was often attached to financial products or agreements such as credit cards, personal loans and mortgages. The purpose of the insurance was to cover the repayments on any of these products if the policyholder was made redundant or could not work because of sickness or an accident.
When sold correctly, PPI can be a very helpful product, but what happened was that many public sector workers i.e. government (local and central) employees were sold PPI, when they would never have been able to claim on it.
Public sector workers such as civil servants and NHS workers were led to believe that PPI would benefit them if they could not work because of an accident, illness or redundancy. However, public sector workers often have contracts that come with many benefits and other forms of protection if they are not able to work e.g. sick pay. If they have mortgage, loan or credit card repayments to meet, these will generally be covered by the terms of the contract to help them avoid financial problems. Therefore, NHS workers and other public sector employees who have similar benefits never needed PPI and it was a waste of money.
The result is that PPI was mis-sold to many people in the public sector who would never benefit from the cover and the banks are now having to repay large sums of money in compensation to those who make a claim.
PPI now has a tarnished reputation because of the actions of high street banks and lenders who pushed the product onto their customers, without conducting the right checks, all in the name of profit.
Professions Within the Public Sector
If you are or have been in any of the following professions, or have ever had a loan, credit card, store card, catalogue account or mortgage then you could have been mis-sold PPI:
- NHS worker;
- Armed services personnel;
- Police officer;
- Local council/authority employee;
- Fire and rescue service member;
- Any other government employee.
How Was Public Sector Workers PPI Mis-Sold?
PPI was such a profitable product for banks and financial services providers that customers were being sold it regardless of if PPI was needed, wanted, or suitable. In addition to this many people who had it didn’t know they had it, because it was added on their accounts without the customer’s consent or knowledge.
An investigation by the Citizens Advice Bureau and by the FSA uncovered the wider problem of selling PPI mis-selling. Proper checks had not been carried out to establish if the customer was eligible for PPI in the first place and if they understood if the products was right for them.
There are several ways in which PPI may have been mis-sold, aside from if you simply had no knowledge of having PPI attached to your loan:
- You may have felt pressured into getting PPI, with the sales person effectively forcing the deal onto you. If you didn’t need the policy, then you may have been mis-sold.
- If you were under the impression PPI was required in order to be successful in your attempts to secure a loan, then you may have been mis-sold. PPI has no bearing on the likelihood of a lender deciding whether to grant you a loan, and it is an optional product.
- Did you have the costs explained to you in detail? The seller should have provided you with a clear breakdown of the separate PPI costs, rather than including them within the loan costs.
- Failing to make clear the PPI was a separate cost could mean you were mis-sold.
- Were you made aware of all the exclusions and terms of the policy? If you did not realise that having a pre-existing medical condition, for example, could result in you not receiving a pay out, you may have been mis-sold.
- Did the seller discuss your employment status with you beforehand? If you were a student, a part-time worker or unemployed at the time you took out the loan, you may not have been able to make a claim anyway, so you could have been mis-sold.
If you are a public sector worker who took out PPI, you may be owed some compensation. The claims process may seem like a daunting task but it isn't as difficult as it first appears.
How Long Do I Have To Make A Public Sector Worker PPI Claim?
The FCA has set a deadline of 29 August 2019 by when all claims for mis-sold PPI need to be submitted.
This means that your mis-sold public sector worker PPI claim must be submitted before this date. New claims cannot be lodged after this date.
There may also be other time limits to considers, so act now and put in your public sector worker PPI complaint as soon as possible.