Typically Payment Protection Insurance (PPI) policies are
sold alongside loans, mortgages and other credit agreements
(such as car finance and in-store loans for items such as
furniture or kitchens).
It is also commonly known as:
Loan or Creditor Insurance
Mortgage Payment Protection
Loan Payment Protection
Accident, Sickness and Unemployment Protection
Personal Loan Protection
Credit Repayment Protection
It is estimated that there are 20 million active PPI policies in the UK.
Of these 20 million policies, it is thought that between 50% and 70% may have been mis-sold, that's a staggering 10million+ policies!
The principle of PPI is that your insurance covers periods on a loan when you are unable to meet the repayments as a result of certain events. Whilst it seems like a good idea, many people are paying far too much for inappropriate policies.
These people were probably not made aware that they could buy cover elsewhere for considerably less.
There are also numerous problems with exclusion clauses, which means that you may think you are covered but if you made a claim there is a good chance that it would be rejected. So in effect, not only are you paying too much but you may be paying for something which is of no use to you.
If you have a loan, mortgage or credit card, it is imperative that you check:
• Whether you are already paying for PPI,
and If you are...
• Whether the policy is suitable for your particular needs.
If the policy is not suitable, you should question why that is.
Were you given all of the relevant information when you signed up to the policy?
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Simon is a famous author who writes frequently about the Credit Agreements, Payment Protection Insurance and Unenforceable Credit Agreements.
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