Payment protection insurance (often abbreviated to PPI) was first introduced to the public around two decades ago but quickly became infamous as it was constantly being mis-sold to members of the public. This brings up the question, was there really ever any need for payment protection insurance or was it simply a ploy by the banks and lenders?
Throughout this article we will be talking about the numerous benefits of PPI and how it can be helpful in certain circumstances. There definitely are some benefits, but it’s safe to say that PPI has developed a very bad reputation over the recent years.
A Brief History of Payment Protection Insurance
As mentioned above, PPI was brought to the market approximately 2 decades ago. For many of you, PPI will have clear benefits but for others maybe not. The main reason why PPI was introduced was so that people would be protected in the instance that they were unable to pay back the loan, credit card debts, or keep up with their mortgage repayments.
As one might imagine, this type of insurance was quite popular with those people who had a high risk of losing their jobs whether that be from a commercial factor or simply because they had an existing health condition. This insurance gave them the protection that they needed and so in certain circumstances it can be highly beneficial.
What Went Wrong?
Because of the nature of payment protection insurance it was notoriously mis-sold by many banks and lenders who hid behind the fact that everyone could benefit from being protected with this type of insurance. These people didn’t necessarily need – nor did they want – the payment protection insurance that was being offered to them. But you might ask, “why did they accept the insurance then?”
Well, the above is a very valid question – they didn’t exactly ‘accept’ the insurance, more so it was mis-sold to them and they were unaware that it was being included in their personal loans, mortgages, and even credit cards.
So What Action Is Being Taken?
A huge amount of the population have wrongfully been mis-sold payment protection insurance and so we are now seeing an influx of compensation claims being made to these banks and lenders. People are reclaiming thousands of pounds in compensation as a result of being mis-sold PPI in recent years.
If you think that you have been mis-sold PPI the best thing to do is to first check through your paperwork for any personal loans, credit cards, and mortgages that you have taken out recently. Check through your terms and conditions and see whether you were mis-sold PPI, if this is the case you should contact your bank or lender. Alternatively, you can always contact a claims management company who will guide you through the process and ensure that your claim gets filed as efficiently and effectively as possible.
If you wish to make a ppi claim visit here