As soon as a person is struck by misfortune such as involuntary unemployment, misfortune resulting to his/her disability, Payment Protection Insurance or PPI, covers loan payments/repayments in case a person lost his job, or unable to work for the reason of bad health, accident and disability.  There are plenty of types of Payment Protection Insurance, the most famous of which are mortgage and credit card PPI.

The existence of Payment Protection Insurance on loans is essentially good for both the loan issuer and the borrower as it ensures the borrower that they won’t have to be concerned about paying their monthly loan in case they lose their job, get badly ill, or have to take a time out from work because they got into an accident.

Sadly there are heaps of reports where unsuspecting customers have been mislead or pressured into buying PPI at high costs or they don’t require.   Mis-selling of Payment Protection Insurance have occurred/still occurs in the UK.  Thankfully, there are groups that offer services to assist customers who have been mis-sold with PPI.

What are the grounds of a mis-sold Payment Protection Insurance?  Mis-sold PPI only differs on how it was sold.  Others say that their banks insisted on purchasing PPI for the loans they took, or else they will not be granted the loan.   The fact of the matter is, PPI should be non-compulsory and should not be forced to anybody getting a loan.  The bottom line is customers should select whether or not they want to get PPI.  Furthermore, it’s bad enough that people are forced to get unnecessary PPI, but it gets even worse if the insurance alone is over-priced or not declared to the client.

People who are self employed, unemployed, retired, and with medical conditions are often not covered by PPI claims.  So if a person was sold PPI even though they’re currently under any of these position, and the lender is aware of the person’s situation, the PPI is considered mis-sold and may be considered null and void.

In addition, the Fraud Act 2006 adds to the arsenal in favor of customers who have incontestable fact that they were mis-sold with PPI and wishes to do a PPI claim.  Further good news is that England’s Financial Services Authority (FSA) and the Financial Ombudsman Service (FOS) have been diligent in prosecuting institutions with complaints from customers regarding mis-sold loan insurance claims.

PPI claims have helped people get back what is legally theirs and have made examples of financial institutions who have violated the law.