Payment Protection Insurance?

PPI is a protection insurance sold to cover your monthly payments in case you have an accident, become sick or are later unemployed. PPI was sold on secured / unsecured (personal) loans, credit cards and mortgages. This can be in the form of an additional monthly premium or a lump sum added to your loan or borrowing.

If you have had any of the following, you could have been mis-sold PPI:
Unsecured personal loan, Hire purchase for car, Loan for home improvements from bank, secured loan, mortgage, as a premium on your credit card, Loan for home improvements from service provider (e.g double glazing, central heating etc.)

The Facts to date

  • According to the Financial Ombudsman, estimated £50 billion worth of PPI policies were sold over the last ten to fifteen years by lots of different financial businesses.
  • 34 million PPI policies were sold on loans, credit cards and mortgages
  • 14 million policies have already been paid out on amounting to just over £16 billion from the current provisions made by the banks of £23 billion
  • Based on this, there are still approximately 20 million policies and £34 billion unaccounted for.

Why would it be deemed to be mis-sold?

There are a number of reasons, the most common being:

  • You were told that it was “required” for the loan to be approved
  • It was unsuitable – you were self-employed, contract worker etc
  • You already had cover from your employer
  • You had an existing medical condition which was excluded from the policy
  • The duration of the loan and cover were different
  • It was added to your loan without your knowledge
  • The cover level was inadequate in case of a claim