“We didn’t even know we had it.”
Have you been caught out by Payment Protection Insurance?
Payment Protection Insurance or PPI is the insurance sold by lenders to cover the borrower if they are unable to make repayments on their loan. In recent months PPI has become the subject of many stories in the media and much legal action.
In short, many banks and financial institutions mis-sold such insurance to any customers borrowing money on credit, whether through personal loans or credit cards. Some of the larger financial institutions such as Lloyds & RBS have put aside billions of pounds to compensate the borrowers they wronged.
The insurance was originally offered for honourable intentions, being designed to cover the cost of loan repayments in the event of the debtor being unable, through infirmity or unemployment, to meet them.
In many cases, customers may not have realised the implications of being required to pay for this policy – in the most extreme circumstances some people were virtually forced to purchase it, and some were not aware they had bought it at all.Now with the news that the large financial organisations have dropped their legal action protecting them from claims to recover mis-sold PPI, many people across the UK who paid for the insurance are seeking the cost of their premium back again.