PPI, or payment protection, insurance is a form of insurance that loan providers or credit card companies sold to their customers in conjunction with their loans or credit cards.
This insurance will protect people in the case that they cannot make their payments due to such things as illness, injuries or death. Some of the situations in which PPI is offered include personal loans, car loans, credit cards and store cards.
This insurance can be extremely beneficial for customers; however, the problem with PPI is that it was often miss-sold. Statistics show that as many as half of all PPI policies sold were miss-sold. In many of these cases, the providers did not provide adequate information on PPI, leaving the customers not knowing that they had even purchased the coverage.
Another way, that providers miss-sold these policies, is by selling them to self-employed or unemployed persons, both of whom do not qualify for collecting under the policies. Another situation in which providers miss-sold PPI is when they sold the policies to people who had existing medical conditions, also whom cannot qualify for collection under PPI policies.
In conclusion, PPI is a form of insurance that provides payments on loans or credit cards when the consumer is unable to due to illness, injuries or death. The problem with PPI is that providers often miss-sold the coverage to consumers in conjunction with loans or credit cards. There are many ways that providers miss-sold these policies, and some of those reasons are listed above.
For More Information On PPI Go to PPI Freedom