PPI stands for Payment Protection Insurance – you may have heard the phrase used on television or in the news, but we’re here to explain exactly what you need to know about PPI.
What Does PPI Mean?
Or more importantly, what does PPI mean to you? PPI is a financial product sold to insure loans, mortgages, credit cards and similar financial agreements in case of illness, unemployment and other unforeseeable events leaving you unable to make your payments.
So, What’s PPI Got To Do With You?
The concept of PPI was there to cover your payments should you find yourself going through a challenging time. For example, PPI would be useful if you fell victim to an illness leaving you unable to work and therefore not capable of making your loan repayments. Alternatively, the current economic climate and technological revolution may make you feel uncertain about your employment, therefore it could be wise to take out PPI to insure your loan.
It may seem as though this is a reasonable and useful insurance product to have, correct? And if sold correctly it probably is. However, it was famously mis-sold to customers who may have been unaware they were buying it, or who may have felt pressured into taking out insurance they were confident they would not need, or may not be eligible to make a claim on.
What Is a PPI Refund?
Or what is a PPI claim? These are words you may have heard listening to the radio, watching television or searching the web. While easy to dismiss, they could be really important to you. If you think you may have been mis-sold PPI why not take the first step and see if you may be owed a refund.
In 2011, the Financial Services Authority (FSA) was allowed, by the High Court, to impose tougher regulations on how PPI was sold to consumers*. Over the years the banks have set aside a significant amount of money, in the billions**, for people who may be eligible to reclaim money spent on a mis sold PPI policy. You can learn more about PPI refunds and whether you may have been mis-sold PPI with Have I Got PPI.com. If you feel as though you may have been mis-sold PPI you should enquire with us now and we’ll do a FREE PPI check†. If we then find you have PPI, and you would like us to act on your behalf, we will work to get you the refund you may be entitled to.
* See: http://www.bbc.co.uk/programmes/articles/46Cy2PJRJzNp3GbCXxZXKG5/payment-protection-insurance-ppi
** 24.5 billion has been paid out in PPI compensation. FCA statistics as at 9th August 2016 for total PPI compensation paid out by all financial institutions across the industry.
† Your PPI check will be undertaken for free. You may then choose to instruct us to investigate and if applicable, claim back your mis-sold PPI or you can do so yourself. If you instruct us, this will be subject to our fees and our standard Claim Terms and Conditions, which are available here.