Is PPI just a £5 Billion Protection Racket?

The Citizens Advice Bureau has dubbed Payment Protection Insurance (PPI) as a ‘Protection Racket’ and reports that the there could be up to 20 Million mis sold PPI policies out there. This many policies could add up to £5 Billion and we are only seeing the tips of the icebergs.

Many people who have taken out credit cards, loans or mortgages are often sold PPI without even fully understanding what it is they are signing up for.

PPI, which is is normally added onto the monthly repayments of the loan, is a loan protection product which is supposed to help you with your repayments should you fall ill or lose your job. In reality many policies were sold by lenders to people who were not eligible to claim on this insurance in the first place due to their circumstances which deems the policy void and missold.

There are many circumstances where a policy shouldn’t have been sold by a lender including:

  • The individual was out of work or self employed at the time of taking out the policy.
  • The individual was led to believe that they must take out a PPI policy in order to obtain the loan.
  • The individual wasn’t made aware that they could choose PPI from a cheaper third party supplier,
  • The person who sold you the policy didn’t make the individual aware of any exclusions that may disqualify them from making a claim.

Could you be one of the 20 Million people who have been mis sold payment protection insurance? Innovative Finance can assess your PPI policy for free and if you are eligible for PPI compensation we can pursue it on a No Win No Fee basis.