Boomerang Finance & Payment Protection Insurance (PPI)

Boomerang Finance, like many lending institutions in the past, offered Payment Protection Insurance (PPI) alongside their loans. PPI was designed to cover loan repayments if the borrower became unable to work due to illness, accident, or unemployment. The premise was sound: protecting both the borrower and lender from financial hardship. However, widespread mis-selling of PPI has led to significant controversy and compensation claims.

The mis-selling involved various unethical practices. One common issue was the failure to properly explain the terms and conditions of the policy. Borrowers were often unaware of the exclusions within the PPI policy, rendering it useless in certain situations. For instance, pre-existing medical conditions could invalidate a claim, but this information wasn’t always disclosed clearly.

Another prevalent problem was the forceful selling of PPI. Customers felt pressured into taking out the insurance, often under the impression that it was compulsory or would significantly increase their chances of loan approval. Salespeople frequently misrepresented the benefits and downplayed the drawbacks, prioritizing their commission over the customer’s genuine needs.

Furthermore, PPI was sometimes added to loans without the borrower’s knowledge or consent. This practice, known as “inertial selling,” was particularly egregious. In other cases, borrowers who were already covered by existing insurance policies, such as employer-provided sick pay, were sold redundant PPI.

The Financial Conduct Authority (FCA) established a deadline for PPI claims, which ended on August 29, 2019. This deadline aimed to bring closure to the PPI scandal. However, if you believe you were mis-sold PPI by Boomerang Finance, even though the official deadline has passed, it may still be worth investigating. There are exceptions, especially if you have recently become aware of the mis-selling, or if there were compelling reasons why you couldn’t claim before the deadline.

To investigate a potential mis-selling claim, you’ll need to gather evidence such as loan agreements, PPI policy documents, and bank statements. These documents can help demonstrate how and why the PPI was mis-sold. If you believe you have a valid claim, you can contact Boomerang Finance directly or seek assistance from a claims management company. While claims management companies charge a fee for their services, they can help navigate the complexities of the claims process and increase your chances of success.

Although the PPI claim window has closed, understanding the nature of PPI mis-selling and the potential for exceptions remains important. Carefully review your financial history and consider seeking professional advice if you suspect you were affected.