What is PPI?
Payment Protection Insurance is an insurance product sold by banks and insurance companies.
It's intention is to ensure repayments of loans if the borrower was unable to make repayments of the loan due to factors such as: redundancy, death, illness, disability, and a variety of other factors.
Payment protection insurance is also referred to as: credit protection insurance, loan repayment insurance and credit insurance.
Payment protection insurance is sold to insure a variety of financial products, including:
- Consumer Loans
- Credit Cards
- Store Cards
Problem With PPI
Although payment protection insurance is usuful in many cases. Many policies were mis-sold as customers were often unaware they had purchased PPI and many policies. In addition, many policies were sold to customers without adequate advice, or little effort to find out if the product has suitable to the customer's individual needs.
As a result many legal challenges again financial institutions came to pass and many high profile companies were fined by the Financial Services Authority. Finally, on 20th April 2011, the UK courts ruled in favour of consumers. This has opened the doors for customers to reclaim mis-sold PPI. PPI Scotland was formed to held customer reclaim their mis-sold PPI.
By May 2008 20 million PPI policies had been sold in the UK, with 7 million being sold every year afterwards.
UK banks have put away billions of pounds to compensate the customers who were missold PPI.
Overall, payment protection insurance has been the most complained about financial product ever.
Please contact us today for more information on any aspect relating to Payment Protection Insurance (PPI). We are happy to provide information on all aspects of PPI and the claims process.