What is PPI

PPI, otherwise known as Payment Protection Insurance has been prominently featured within the news as of late, as thousands of people have realised that they may have been mis-sold the controversial cover.

Many people who have or had PPI were not even told that they had it and the amount was simply added to their payment, sometimes without them even being aware. When loan terms were offered with PPI the bank or company offering the loan would often describe the loan as ‘fully protected’ rather than asking the person if they wished to take out PPI in case they needed it.

The majority of PPI mis-selling came from face to face and telephone sales, where advisors didn’t outline to borrowers whether they really needed PPI, how much PPI would cost them or what level of PPI they needed. In some cases borrowers were even told that to take out a loan it was essential that they also purchased PPI – even if it wasn’t. In these cases the reclaim success rate is very high.