PPI is generating lots of news in present times. This is because financial services are tackling and approaching poor selling or mis-sold PPI.
So what actually is PPI? The name PPI stands for Payment Protection insurance. It’s a type of insurance which may be taken along side a mortgage, loan or credit/store card.
Under a PPI policy, an amount of money is paid out each month to cover a full amount or a percentage of you mortgage or loan should you be unable to work. You may be unable to work or pay monthly amounts due to a number of things:-
1) Becoming unemployed
2) Involved in an accident of some sort
3) Becoming sick
In all types of insurance some claims are accepted and some are rejected, but in the case of PPI the number of rejected claims is high compared to other types of insurance. A reason for this is that, as with many forms of insurance, the PPI is not underwritten at the sales stage and is sometimes taken out by customers without careful consideration as to whether it is right for their circumstances and without careful attention to the policy terms and conditions. Individuals who seek out and purchase a policy without advice have little recourse if and when a policy does not benefit them. However most PPI policies are not sought out by people and in some cases consumers claim to be unaware that they even have the PPI.
Do you know whether you have PPI? If not have a look on the paperwork sent to you when you took out a mortgage, loan or other finance agreement or view your monthly statements which may state payment protection insurance or something along these lines. If your still unsure, try contacting your finance provider and asking them whether you have PPI or not.
Many high profile companies have now been fined in selling PPI without the customer agreeing to it and the amount of claims for mis- sold PPI is now increasing.
Many people are paying for PPI without actually realising what it is or wanting it thus causing expensive payments which you will never be able to claim so it really is worth taking a look to see if you have been mis-sold PPI.