Cahoot payment protection insurance (PPI), also known as loan repayment insurance, credit insurance or credit protection insurance was designed so that the borrower could make repayments to Cahoot if they were unable to earn income to service the debt. This shouldn't be confused with income protection insurance which is not usually attached to a debt. PPI was widely sold by Cahoot as an add-on to the loan or an overdraft product.
Cahoot PPI usually covered payments for a minimum of 12 months, this gave the borrower enough time to find alternative means of making repayments such as going back to work.
Some Cahoot PPI policies were sold without the consumer even aware that PPI was added onto their loan. Some consumers claim that Cahoot informed them that their application for a loan, credit card or mortgage would be declined if they didn't take out Cahoot payment protection insurance. In some cases this led to fear of losing a loan and the borrower would accept the Cahoot PPI even though they may not of even needed it.
Cahoot may have mis-sold you PPI if any of the below statements are relevant to you at the point of sale:
- Did you have a pre-existing medical condition at time you were sold your PPI policy by Cahoot?
- If you were ever unable to work throughout the term of your Cahoot PPI policy due to the pre-existing medical condition, you would not have been covered by the Cahoot PPI policy.
- Were you led to believe that the Cahoot PPI policy was compulsory to your finance agreement?
- If a PPI policy was required for the finance agreement, Cahoot should have made you aware that you had the right to shop around OR if you had pre-existing cover elsewhere, Cahoot should not have sold you another PPI policy.
- Did Cahoot make you aware of any exclusions or circumstances in which you would not be eligible to make a claim?
- If you weren’t told by Cahoot about the exclusions, or circumstances in which you couldn’t claim, you may have been mis-sold your Cahoot PPI policy.
- Was the term of your Cahoot PPI cover shorter than the term of the finance agreement AND did Cahoot not explain that there would be a period of no PPI cover towards the end of your finance agreement?
- If Cahoot did not explain that you would be unprotected for any period of time throughout the finance agreement, you have been mis-sold your Cahoot PPI policy.
- When you were sold your PPI policy by Cahoot, were you unemployed, self-employed or retired?
- If you were unemployed, self-employed or retired when Cahoot sold you your PPI policy, you would not have been covered and therefore the Cahoot PPI policy would have been of no benefit to you.
- Were you older than the upper age limit for your Cahoot PPI policy?
- If Cahoot had an upper age limit on the PPI policy and you were above this set age, you would not have been covered.
- Were you aware that Cahoot had added PPI to your agreement?
- If you were not aware PPI had been added to your agreement by Cahoot, it may have been added without your consent or it may have been opt-out box which was not obvious.
- Did Cahoot make you aware that part of your PPI premiums may have been paid as commission?
- The Plevin ruling means that if over 50% of your PPI premiums were paid in commission to Cahoot, you were mis-sold and are due a PPI refund.
- Was the total cost of the Cahoot PPI policy clearly explained to you at the point of sale?
- Cahoot should have explained every aspect of any costs relating to your PPI agreement. Failure to do so would be considered a big mis-selling factor.
- Did you feel pressured into purchasing the Cahoot PPI policy?
- A simple assessment of your personal circumstances to determine if PPI was of any benefit to you should have been carried out by Cahoot, with no pressure or hard selling.
- Did Cahoot make you aware about cancelling your PPI policy?
- You should have been made aware by Cahoot that you had the right to cancel your PPI policy within the cooling off period.
- Did Cahoot enquire if you had PPI cover elsewhere that would of covered repayments?
- Cahoot should have asked if you had pre-existing PPI cover elsewhere as this would have been sufficient.
If you have a successful PPI complaint against Cahoot upheld, you would be entitled to a full refund PPI paid to Cahoot, a full refund of any interest charged on the PPI by Cahoot and a compensation interest of 8% per annum on both of those combined.