You may have heard about mis-sold payment protection insurance (PPI), but you’re not really sure what is. Read our comprehensive guide to what is PPI and if it’s possible for you to make PPI claims.
What is PPI?
Payment protection insurance, also known as PPI, was sold to cover loan, credit card or mortgage repayments in case of an accident, sickness or unemployment.
There is nothing wrong with PPI policies for those who need it and assuming it has been sold correctly. However, PPI has been systematically mis-sold to millions of people. If you have taken out a loan, credit card or mortgage in the last few years, then you may be entitled to make a PPI claim.
A good PPI sales process should fully inform you of the following:
- The costs of PPI
- Advise you that the policy was optional
- Give you full details and policy documents
- Ask about any pre-existing medical conditions you may have had
- Ask about your employment status and other key details.
In practice, these policies were often sold without the above questions and information. The sales of PPI were made to boost a company’s profit margins and commission for the advisers.
So, now you understand what PPI is, you may be able to make a claim and receive thousands of pounds for your mis-sold PPI. The average PPI payout is approximately £2000, but many more customers have received a much larger figure.