If you have taken out a loan or credit card in the last ten years then it is likely that you have also been sold Payment Protection Insurance (PPI) as part of the loan agreement.
PPI is designed to protect you if you fall sick, become unemployed or suffer an accident and cannot keep up your monthly repayments. It may sound a great idea but in reality it is nothing but a racket which has resulted in many people paying over the odds on their loan repayments. It was only an optional extra but many people were told that they had to take PPI in order to get the loan. Others were not even informed that PPI was being charged on the loan repayments. Basically it made the loan company huge sums of money whilst hard working people lost out by paying for something they simply did not know about or didn’t even need
Many credit agreements contain PPI boxes ticked by customers totally unaware what they were selecting. Of course in circumstances where loans are desperately needed, customers often put pen to paper on anything. Signing one’s life away carries a whole new meaning with PPI on loans.
Many banks sold PPI with the usual sales pitch that the insurance was a condition of the agreement. Others would sell it as a force tactic to simply push the sale through.
On top of monthly repayments customers with PPI would be paying extra and this could amount to thousands over the years. Often, loan lenders would sell the PPI as a one off premium.
The FSA has begun to clamp down on PPI misselling but it is staggering that the product is still being sold. Millions of policies have been flogged to unwitting customers and it is time to fight back and reclaim.