Payment Protection Insurance or more commonly known as PPI is a type of insurance that is being offered if you apply for a mortgage, auto loan or credit card. The primary purpose of PPI is to cover loan repayments in case that the borrower is no longer capable of paying it. However, due to many mis-sold policies, borrowers now think that PPI policies are a big fraud. The truth is, fraud may happen to any insurance coverage. Thus, you must always pay attention to every detail when acquiring an insurance policy.

It’s worth noting that PPI policies are very useful especially in times of financial hardships and anyone can get a PPI policy. However, things can get out of hand when companies begin to misuse these insurances. In addition, with a significant number of mis-sold PPI policies, borrowers are now skeptical about the whole idea of getting this insurance.

Mis-Sold PPI

Misselling of the PPI policies happens when the loan company fails to keep their word. Many financial institutions offer this kind of coverage, and at times, they do not follow the whole procedure thoroughly, and it eventually leaves their customer hanging. Also, many of them will sell this policy to borrowers even if they are not eligible. Some are talked into purchasing policies by pushy sales people, and they will insist that PPI coverage is mandatory before a loan can be approved.

PPI Claim

Now, if you applied for a mortgage, auto loan or credit card in the last …

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