Payment Protection Insurance (PPI) or Accident, Sickness and Unemployment Cover (ASU) has been assumptively sold by many lenders for over 30 years.
These policies can be very expensive for the level of cover they offer and many policies have significant exemptions making it difficult or even impossible for policyholders to benefit from the insurance.
Many people were sold PPI incorrectly by the banks and lenders over a number or years. The banks sometimes informed customers that the payment protection insurance was a compulsory part of the loan, or, if they wanted the loan they would have to accept the PPI.
Some banks also simply included the PPI as part of the loan without informing the customer. Victims of payment protection mis selling included customers who could have never benefited from the insurance such as the self-employed, the retired or the unemployed.
Many people have been affected by mis sold payment protection insurance. Millions of PPI policies have potentially been mis sold. The banks have now set aside £14billion (at the beginning of 2013) to cover costs of payment protection mis selling. This figure could rise further according to some industry experts as the true extent of mis sold payment protection insurance is still being revealed.
Whether you had a Loan, a Credit Card or Mortgage the purpose of this insurance was to ensure loan repayments were paid if you were unable to work through illness, made unemployed or become incapacitated. It has emerged many payment protection insurance policies were mis sold.