What is PPI? Here’s everything you need to know
While it’s more than likely that you’ve heard the term PPI mentioned on the news, you might not know exactly what it means.
Read on to find out what it is, how it was mis-sold and how you can go about reclaiming your money with First Target Recoveries.
What is PPI?
PPI, or payment protection insurance, is a type of insurance sold by companies when you take out a loan. The loan could be anything from an unsecured cash loan to a credit card.
It is designed to ensure you could continue to pay your monthly repayments to the loan company. This might happen if you lose your job or become ill and unable to work.
While the idea sounds good in principle, it is the way in which it was sold to people that has caused problems and led to a huge mis-selling scandal. Now banks are facing compensation claims running into millions.
Lots of policies were mis-sold and customers weren’t informed of all of the details.
How was PPI mis-sold?
PPI could have been mis-sold if it:
- Had been added without the customer’s knowledge
- Was sold to self-employed, unemployed and part-time workers, non of whom match the qualifying criteria to make a claim in the first place
- Was sold to customers with pre-existing medical conditions
- The policy didn’t covering the full term of the loan
- PPI was often poorly explained by sales staff, hence the confusion among customers.
As a result, in recent years many loan customers have tried to claim it back.
How can I tell if I have PPI?
Check the original paperwork from when the loan was taken out. If you don’t have this anymore, you can still contact your credit provider and ask them whether the loan had PPI on it.
You might also see it referenced on past bank statements under phrases like protection cover.
What to do next…
If you think that you were mis-sold PPI, you might be able to make a claim and potentially win back some of your money.
Our team at First Target Recoveries specialise in mis-sold PPI policies and claims. We have helped over 65,000 people like you claim back their money since we launched in 2011.
Get in touch via our online form or call us on 0800 023 4953. We can help get your claim off the ground.