What is mis-sold Payment Protection Insurance? PPI (as Payment Protection Insurance
is more commonly known) is insurance sold alongside a wide range of financial products
such as mortgages, loans, credit & store cards. Mis-selling of these policies occurs
when they have been incorrectly sold and not explained properly which results in
the policy being inadequate or worthless.
Payment Protection Insurance promises peace of mind and reassurance to the borrower
that credit or mortgage payments will be covered if their personal or financial
circumstances change for the worse i.e. if they’re unable to work due to illness,
injury or redundancy. However, many people find that they cannot make a successful
claim because of exclusion clauses and other barriers and can often add thousands
of pounds over the life of the loan.
Recent data shows that up to 50% of all policies sold have been mis-sold resulting
in the Citizens Advice Bureau (CAB) calling it a Protection Racket and have reported
it to the Office of Fair Trading to investigate fully.
You may not even know you have this over-priced insurance so it’s worth checking
your loan paperwork now...