Types of PPI we can Reclaim

You are probably reading this because you either know you have been mis-sold payment protection insurance or you suspect you may have been mis-sold and are doing some research. We have compiled the following list to dispel the common perception that there is only one type of PPI that could have been mis-sold. There are many different types of PPI policies on the market. In addition to this, many companies have their own variations of the name they give to it. For example RPC – Repayment Protection Cover. Whatever it is called and however it is dressed up, it still boils down to it being PPI.

Reclaim PPI on a Secured or Unsecured Loan

Single Premium Policy

With a single-premium policy, a lump sum covering the cost of the insurance is added to the amount borrowed, so the customer ends up paying interest on both the insurance premium and the loan. A possible other problem with this type of PPI is that it may not cover the whole term of the loan. Sometimes a 5 year PPI policy will be sold on a 10 year loan.

Monthly Premium Policy

This is a slightly fairer way to offer PPI. The total cost of the PPI premium is divided by the number of months the loan is over. You will then pay this amount each month in addition to the loan repayment. The advantage of this is that no interest is charged for the PPI. However, despite the fact that banks continued to offer this form of PPI for a while even this has been phased out because of the controversy surrounding the mis-selling of it on a national scale.

Reclaim PPI on Credit or Storecard

PPI on credit cards works on a similar basis to the above with a monthly premium being charged to the card. However, unlike with loans, the very nature of credit cards means that at any given time the balance can vary wildly. To accommodate this the premium is calculated based on the monthly balance on the card only. At first glance this can seem like a small price to pay but this can soon add up – especially for those who regularly rack up large balances.

Reclaim PPI on Mortgages

This is most often a monthly premium policy which runs alongside your mortgage. You will normally choose the level of cover and the premium will be determined accordingly. You can either set it up to pay the whole month repayment or just a specified amount. One of the disadvantages of this type of cover is with some policies if the policy is in joint names and one person claims they will only get half of the amount covered.

Reclaim Lifestyle Protection Insurance

Lifestyle Protection Insurance can be tailored to protect your gross monthly income in the event of accident, sickness or unemployment. Benefit Payments can be paid for up to 12 months for any one claim. This is slightly different from true PPI as it is not connected to one specific loan. However, as with all types of PPI, it is still a form of insurance designed to protect and cover you so the principle of mis-selling remains the same. With Lifestyle Protection Insurance you choose the amount you want to receive each month if you have to claim and the monthly premium is determined. You would then get that amount of money each month while you were claiming and you would use this to meet all of your financial obligations including mortgage repayments, bills, credit cards, living expenses etc.


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Claim Type: Mis-sold Mortgages Mis-sold PPI Care Home Claims
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