What is payment protection insurance?
PPI (Payment Protection Insurance) was intended to cover credit repayments, such as loans, credit cards and even mortgages, if you were unable to work due to illness or redundancy. The promise was that if you lost your job, fell ill, or unexpectedly ended up in a situation which meant you were not earning money any more, the insurance would cover your repayments.
PPI was also called Accident, Sickness and Unemployment cover (ASU), Life & Accident, Sickness and Unemployment cover (Life & ASU), Mortgage Payment Protection Insurance (MPPI), Personal Loan Protection (PLP) or Credit Card Repayment Protection (CCRP). These policies were often sold alongside credit cards, loans and mortgages.
If you have a credit card, loan or mortgage then there is a good chance you were also sold a Payment Protection Insurance policy. In many cases lenders mis-sold these PPI policies and this entitles you to reclaim the PPI cost. If you have been mis-sold we may be able to reclaim £1,000s on your behalf.
There is nothing wrong with correctly sold PPI policies for those who need it. However it has recently come to light that millions of Payment Protection Insurance policies have been mis-sold by companies in order to boost their profit margins and improve the commission of the advisers, which is why many people are now entitled to a PPI reclaim.
A good sales process should fully inform you of the costs, advise you the policy was optional and can be bought from companies other than the original lender if they are cheaper. Give you full details and policy documents, ask about any pre existing medical conditions you may have had, ask about your employment status as you should be in employment at the time of taking out a loan or credit card and much more.
If you feel that you that you were mis-sold PPI check your credit card statement or loan agreement to see if it includes PPI as in some cases you may not know that you had taken on a form of PPI.
Our specialist PPI team can find out if you have paid PPI on any of your loans, credit cards and mortgages, both past and present, and in most cases without any need for documentation or account numbers. This is useful if you think you may have PPI but have lost the paperwork and cannot remember your account numbers.