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Insurance Policy Mis-selling

Payment Protection Insurance has been mis-sold by banks and lenders throughout Ireland and as a result there are potentially hundreds of thousands of consumers who are paying expensive monthly premiums on Insurance cover which will never cover them, which they did not request and which they were led to believe was compulsory.

Payment Protection Insurance is NOT a compulsory insurance cover which consumers have to take out when securing credit. Under the terms of the Consumer Protection Code this policy should only be sold to consumers who request it and who will benefit from it.

If you find you have a policy with Payment Protection Insurance then talk to us at Declan Duggan & Co. and we will help ascertain if you are due a refund or not.

What is Payment Protection Insurance?
Payment Protection Insurance is an insurance policy sold alongside forms of credit such as Mortgages, Loans & Credit Cards. The purpose of Payment Protection is to provide consumers with an insurance policy on their repayments should they become unable to work for reasons such as death, accident, illness or redundancy. In theory these policies sound fantastic however the reality is that they are not always are good as they claim to be. Payment Protection Insurance is extremely expensive, has low payout rates and it is unfortunately not always sold to consumers who requested it and who will benefit from it.

Why has Payment Protection Insurance been mis-sold?
The harsh reality is that Payment Protection has been mis-sold by banks and lenders to increase profits and not to protect consumers. On a €10,000 loan a consumer can expect to pay as much as €2000 extra just for PPI and on a credit card it can equate to as much as 8.5% of a monthly balance. On a mortgage the figures increase quite considerably. You can expect to pay €4.75 a month for every €100 outstanding on your mortgage. This over a term of 30 years can see you paying as much as €20,000 for the benefit of Payment Protection Insurance which in many cases will not cover you should you need to use it. Payment Protection is an extremely lucrative insurance policy and it is easy to see why it has been mis-sold.

How has Payment Protection Insurance been mis-sold?
Payment Protection Insurance policies have a number of exclusions in the fine print of the terms and conditions which can sometimes prevent a payout. If you have Payment Protection you may not be able to claim if:

• You are under 18 or over 65
• You work less than 16 hours a week
• You are self-employed or unemployed
• You have existing medical conditions
• You are on contract or temporary work

Outside of the exclusions within the terms and conditions of Payment Protection Insurance it is often sold to consumers who are told that it is compulsory. This is not the case as Payment Protection is an OPTIONAL cover.

Consumers have also been pressurised into taking this expensive Insurance Policy as a result of heavy handed sales techniques used by sales staff eager for the juicy commissions Payment Protection generates. As well as aggressive sales techniques Payment Protection has often been sold to consumers who did not request it. It is not uncommon to hear of consumers discovering PPI having never requesting it. How I know if I have been mis-sold Payment Protection? If you have taken out a Mortgage, loan or credit card within the last 6 years it is advisable to check if you were sold Payment Protection Insurance. If you have this policy it is advisable to check the terms and conditions of the policy to see if there are any exclusions which will prevent a payout should you need to use it.