Do You Know What PPI Stands for on Your Loan Payment?

Have you ever wondered what is PPI? PPI stands for Payment Protection Insurance. PPI is a popular insurance program that is designed to help people who take out loans, credit cards or mortgages and want to cover all their basic living costs and repayments should they get sick or lose their job after they have taken out the loan. If you are considering borrowing money in the next few months, you might want to ask the lender if this is a good option for you. If is safe and can offer some extra peace of mind so long as you read the terms and conditions carefully before you sign any documents.

In the past, it was considered by the FSA (Financial Services Authority) that some banks and lender were not honest when they sold these policies. They claim that the lender was only adding on an extra loan in order to make more money. Often people were not told all the details of the insurance. If they asked what is PPI when applying for the loan, they were often told that they had to have PPI in order to take out the loan or mortgage which was not the case at all. They were forced to buy it when they did not understand what they were doing. Because this insurance was mis sold, it is possible to place a claim against the company that sold it and recover all your PPI payments with interest added too.

If you think that you were part of this scheme and were forced to buy PPI insurance that you did not understand in the last few years, you may have a good reason for a claim. The first thing to do is to take a look at your policy. If you lost it, contact the bank and they may have a copy of it for you. Remember if you file a claim, you will no longer have the insurance. It is important that you understand that issue, because if you have a problem in the future with making the payments, you will not be able to get help. This is an important issue in the UK Finance Industry today and the misselling mistakes from the past should be made right.

This is certainly an issue worth looking into. You will need to review your policy and see if you think you were miss sold PPI in anyway. It can be frustrating, but there is no need to overpay for unnecessary protection to give money to banks and lender

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