One of the reasons PPI claims are rejected is because the policyholder was self-employed at the time of taking out the policy and had taken out a business loan, personal loan, credit card or mortgage. In such instances there is a high probability that the PPI was mis-sold.
What does it mean to be self-employed?
You are self-employed if any of the following apply:
- The business is run for yourself and you take responsibility for its success or failure;
- You have several customers at the same time;
- You decide how, where and when you work;
- You hire other people at your own expense to help you or to do the work for you;
- You provide any equipment to do the work;
- You are responsible for finishing any unsatisfactory work in your own time;
- You charge an agreed fixed price for your work; or
- You sell goods or services to make a profit (this includes through websites or apps).
Bear in mind that you can be employed and self-employed at the same time. This would occur if, for example you work for an employer during the day, then in the evening you run your own business.
How does the PPI scandal affect the self-employed?
There are many victims of the PPI mis-selling scandal and the self-employed were greatly affected. PPI policies were sold as a way of protecting the policyholder from the risk of losing their job. Many people who were self-employed were sold the product, even though the terms of the policy often excluded the self-employed from being covered, rendering the policy worthless.
Were you self-employed when you bought PPI? If so, carefully check the wording of the policy. If it has a clause saying you will be covered if you become unemployed, you may have grounds for reclaiming your premiums.
If you find that you have a policy that does cover you as being self-employed it may not pay out straight away. There could be limitations in place where they will not cover the first month of incapacity and could be limited to only 12 months, leaving you not fully protected in some circumstances.
You also have grounds to claim if you were not asked about your employment status or if the cover was added without you knowing about it.
The following circumstances may give rise to making a claim although they are not directly linked to being self-employed:
- Medical conditions – if you had a pre-existing medical condition at the time of taking out the policy that you were not asked about or was ignored;
- Misinformation – you were told, or it was inferred the PPI was compulsory, or your credit application would be denied without it.
- Time periods – the term of the PPI policy did not run for the length of the loan.
There are other factors which may also give rise to a claim for mis-sold PPI.
Furthermore, if you become sick or suffer from an injury and are self-employed, you may be entitled to certain benefits to top up or replace your earnings from being self-employed. Please seek further advice regarding this.