Payment Protection Insurance definition

Posted on February 24, 2011 by Canary Claims

Over the last ten years loans and credit card repayments were often sold with Payment Protection Insurance, or PPI to cover the consumer of the financial burden in case they are unable to repay due to accident, sickness or unexpected unemployment. PPI is also sold with mortgages, and covers for similar insurance. It can also be known as Accident, Sickness and Unemployment cover (ASU), Life & Accident, Sickness and Unemployment cover, Mortgage Payment Protection Insurance, Personal Loan Protection or Credit Card Repayment Protection.

There is nothing wrong with PPI policies as a sellable product, and often consumers may want this level of insurance when taking out a large loan or mortgage, but in recent years it has arisen that millions of people have been systematically mis-sold PPI without proper knowledge or understanding that it was being added to their committed repayments.

If someone is mis-sold payment protection insurance they are entitled to claim this money back, often reclaiming £1000’s back in compensation.