PPI stands for Payment Protection Insurance that provides an income facility to maintain debt repayments of borrower in case of an accident or illness that prevents them from working, or unemployment. PPI is a product service offered by financial services companies that provides you a protection against unfortunate losses in financial circumstances which may impact upon your ability to meet credit repayments. PPI policies provide protection to forms of personal debt, personal loans, mortgages, and credit card repayments. These are stand-alone policies that available at any time. It is a great division of a group of insurance products that provide more benefits. There are three common types of payment protection.
• Income payment protection insurance
• Mortgage payment protection insurance
• Loan payment protection insurance
Why Claim?
There is evidence of PPI mis-selling through high pressure sales tactics and large incentives for staff which can encourage them to sell PPI when it is not in the best interests of the borrower. Financial services companies in some cases have not made it clear that PPI is optional and have added it to repayments. You may be paying for PPI at this very moment and not be aware of it. Borrowers take out PPI assuming in good faith that their loan repayments will be met should they unfortunately have an accident, fall ill or become unemployed. PPI can provide valuable protection for some people when sold correctly. However, research conducted by consumer watchdogs and now the Financial Services Authority (FSA) has raised very serious concerns regarding sales practices across the whole industry. This suggests that lenders have yet again been putting profits ahead of the interests of the consumer. Be aware that insurers can reject claims on the basis of age, self-employment, pre-existing medical conditions, mental health problems and disputes about medical conditions.