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Payment Protection Insurance (PPI) has been mis-sold by banks and lenders throughout Ireland and, as a result, there are people who are paying expensive monthly premiums for insurance cover in respect of which they would be ineligible to claim.   Very often the consumer did not request the insurance and they were lead to believe it was compulsory at the time of taking out a loan such as a mortgage, a personal loan or a credit card.

The purpose of payment protection is to provide consumers with an insurance policy on their re-payments should they become unable to work for reasons such as death, accident, illness or redundancy.   In theory these policies are good however, the reality is that the particular policy may not be suitable for the particular consumer or in fact the consumer may be ineligible from the outset to claim.   There are cases where people who are retired or who are working full-time in the home or some people who are part-time workers were ineligible from the outset and would never have been able to pursue a successful claim against their payment protection insurance policy.  Payment protection insurance is extremely expensive and has low payout rates.

Under the terms of the Consumer Protection Code Payment Protection Insurance should only be sold to consumers who require it and will benefit from it.   It would appear that PPI has been mis-sold by banks and lenders to increase profits and not to protect consumers, e.g. on a €10,000.00 loan a consumer may expect to pay €2,000.00 extra  for the benefit of Payment Protection Insurance.  In respect of credit cards the PPI can increase the re-payment rate considerably by as much as 8.5% on a monthly balance.  However, if you have taken out a mortgage, loan or credit card within the last six years it is vital to check if you were sold a Payment Protection Insurance policy.  The terms of the policy may have exclusion clauses which affect you directly and which prevent a pay-out e.g. if you are under 18 or over 65, if you work less than 16 hours a week, if you are self employed or unemployed, have a pre-existing medical condition or have a contract for temporary  work.  Very often consumers are told that this insurance is compulsory.  This is not the case as Payment Protection is an optional cover.

AIB, Permanent tsb, EBS, Bank of Ireland, Ulster Bank and G E Money have all been told to contact everyone to whom they sold such policies by the Central Bank.  Central Bank officials want the lenders to review their files on payment protection and refund consumers who should never have taken out these policies or who should never have been sold them in the first place.

At Kieran McCarthy & Co. we are experienced in bringing successful cases on behalf of people who have been mis-sold financial products.   If you believe you or someone you know has been mis-sold Payment Protection Insurance you should contact us at



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Kieran McCarthy & Co. Solicitors
Floor 3B, 6 Lapps Quay, Cork.
t: 021 427 5220 | f: 021 427 5250

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