Well, yes there can.

A great many personnel serving in HM Forces have have, at one time or another, taken out one or more of the following:

• Debt consolidation loan
• Car loan
• Credit Cards
• Hire Purchase
• Mortgage
• The list goes on and on...

When you took out your loan you were almost certainly offered a policy to protect your payments if you were unable to pay. This is called Payment Protection Insurance (PPI) and can, apart from the fact that nobody serving in HM Forces needs this cover - you're fully covered by your employer, be ridiculously expensive. The Financial Services Authority (F.S.A.) have ruled that many of these polices have been mis-sold - certainly this is the case for all Service personnel, which means you can make a claim to get your money back.

A good sales process, when you borrowed, should have fully informed you of the costs, advise you the policy was optional, give you full details and policy documents, ask about any pre existing medical conditions you may have had, ask about your employment status and much more. In practice, these policies were often sold without much investigation in order to boost companies profit margins and commission for the advisers

Are you owed compensation?

If any of the statements below apply to you then you could be in for a big windfall:

• They made me think I had to have PPI in order to have the loan
• They added the PPI onto the loan without fully explaining why
• The bank didn’t explain the full cost of the PPI or the exclusions in the terms and conditions
• When I took out the loan I was serving in HM Forces (even though you may since have left)
  
• When I took out the loan I had existing medical conditions such as depression, back problems etc
• The PPI was a paid as a lump sum when you took out the loan

Will a mis sold loan insurance claim affect my credit rating?

No, a mis sold PPI claim won’t adversely affect your credit rating. Instead it could substantially reduce the payments on your loan and your monthly outgoings by a surprising amount and give you a substantial payout. It won’t adversely affect your loan either and if you feel you need it, you should be able to get replacement insurance at a fraction of the cost.

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