Mis-selling of PPI (again!)

I am assisting a relative in attempting to reclaim PPI on a First Plus
secured loan. The PPI was a single-premium policy added to the loan from the
start (at a cost of £4,500!) and he has been paying interest on that £4,500
over the 3 years that the loan has been running. Single premium PPIs have,
of course, now been banned. The PPI only covers the first five years of the
loan - whereas the loan itself is over 15 years. The relative claims that he
was not aware of this and would not have taken out the PPI had he known. The
problem is that the 5 year period 'is' shown on the documents that he
signed.
Looking at the reasons for which PPI can be reclaimed there are such things
as:
"It was not made clear that the PPI was not compulsory"
"It was not made clear that the PPI only covered the first five years of the
loan"
"It was not made clear that interest would be payable on the PPI premium
throughout the length of the loan"
etc.
What puzzles me with regards to these points is the 'It was not made
clear...'
If all of these factors are included on the documentation that the borrower
signed prior to obtaining the loan, then can they still claim that 'It was
not made clear...' simply on the basis that the loan provider did not
'verbally' make it clear during the discussions prior to the loan being
taken out?
Reply to
Ret.
Discovered the answer for myself. The enquiry into mis-selling of PPIs made it clear that sellers should not just rely on documentation, but should ensure that the documentation is explained to potential customers so that they are fully aware of what they are signing up to. Excellent.
Reply to
Ret.

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