Payment Protection - What Is PPI?

What is PPI?

If you've taken out a loan or arranged a mortgage, Payment Protection Insurance (PPI) would undoubtedly have entered the picture whether you were aware of it or not.

PPI is a product sold by financial services companies to provide you and your family with protection against unforeseen changes in financial circumstances which may impact upon your ability to meet credit repayments. After all, anyone at anytime can become ill, have an accident or find themselves out of work resulting in a fall in income.

There are some 20 million active PPI policies in the UK: however, only 450,000 claims are made annually and 1 in every 4 is rejected by the insurer.

PPI is failing to safeguard the most vulnerable in need of its protection...

Many borrowers who try to claim on their PPI policies find that they cannot due to exclusion clauses, bureaucratic and insensitive administration and unreasonable requirements to provide medical evidence. Ironically PPI is letting down those at greatest risk of financial difficulties and who are most in need of its protection.

...many people have PPI without even knowing. PPI is hugely expensive: it can add between 13% - 56% to the cost of the loan

The CAB has found cases where consumers didn't realise they had purchased PPI as salespeople had automatically included it in their repayments.

For further information call us on 0845 271 4005, or click here to claim online.

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