The time has now arrived for me to construct a short blog post about payment protection insurance, which is commonly abbreviated to PPI. In this short blog post, however, I am going to make the mis-selling of PPI the center of my attention, but I will try to take some time in the beginning of this blog post to provide a brief explanation of what exactly PPI is. For a detailed explanation about PPI, you could visit mis-sold-ppi.co.
To put it simply, PPI is a specific type of insurance that protects a person from defaulting on any credit cards, loans, store cards, or mortgages that they have taken out in the event that they become unemployed as a result of reasons beyond their reasonable control. Such reasons could include redundancy or ill health. PPI also protects a creditor because the PPI provider will continue to pay a borrower’s loan repayments for the entire period that the borrower is unemployed.
In theory, you are probably thinking that purchasing PPI coverage can be nothing but a good idea. However, in practice, a large number of creditors have deliberately and deceitfully mis-sold PPI policies to tens of thousands of borrowers. Creditor mis-sold people PPI coverage because when a borrower buys PPI, a creditor does not have to worry about the borrower defaulting on any credit he or she is provided with. Over the past ten years, creditors tried to get as many people to purchase PPI as possible, through any means possible, without any regard for the consequences.
A lot of borrowers were told by dishonest lenders that buying PPI was a compulsory condition of credit. In fact, one of the most common ways in which creditors mis-sold PPI was by telling borrowers that PPI was not an optional extra, despite the fact that it was and is illegal to force people to buy PPI before you give them access to credit.