There is a huge need for the terms used in connection with PPI claims to be simplified. It is so off-putting to be faced with jargon and technical terms, especially when it involves abbreviations involving strings of capital letters. The people who have claims regarding their Payment Protection Insurance, unfortunately a great number of people still do not know what the initials stand for; generally have a very poor understanding of financial jargon. They recognise the terms, but the exact meaning? – Pass.
So if this refers to you here is a simplified explanation of some confusing terms.
ASU or Accident Sickness and Unemployment Insurance – this is another term for PPI.
BBA or British Bankers Association – all lenders are members of this. You may come across this in your documentation. Basically their role is to take the side of the financial companies and banks.
CPI or Credit Protection Insurance – this is another term for PPI.
FOS or Financial Ombudsman Service – this is an independent body whose role is to deal with disputes between individuals and banks and other lending agencies. This service can only be used if the financial institution has attempted to resolve your complaint and you are unhappy with the outcome. It is to your benefit to have knowledge of this body as they are able to make decisions and judgements which must be adhered to.
FSA or Financial Services Authority – this is the government regulatory body for banks and other financial agencies.
FSCS or the Financial Services Compensation Scheme – by the time many claims are made the original lender has gone out of business. If this affects you do not worry you can make a claim through this agency.
LPI or Loan Protection Insurance – this is yet another term for PPI.
Single Premium Policy – this is where you had a lump sum added on when PPI was taken out. As it is not being paid monthly it is easily missed.
So there you have it a clear explanation of some baffling terms, if you are not a financier, you need not be afraid of them any more.