. This policy is designed to protect people with loans, mortgages and credit cards who want to take out protection againt being unable to meet monthly repayments. Reasons for this include being made unemployed, or suddenly falling ill and being unable t work. The idea is that the PPI policy will pick up the payments of your loans or mortgages whilst PPI policies will only cover repayments in certain circumstances so it is important that the policy is suited to each customer's individual circumstances.
There are various different ways that PPI is being mis sold by banks and lenders in the UK. Adding PPI into loans withoout asking if the customer wants it is extremely common in the UK, there are many cases of banks telling their customers they have to take out PPI because they have dangerous professions or they are considered a credit risk.
There are 100's of different ways that PPI has been mis sold to millions of people in the UK. It is thought that over 20 million people in the UK have policies that do not cover them, sometimes having paid up to 40% of the loan amount.
The true cost of PPI can be so prohibitive that anyone who has taken out a loan, mortgage or credit card in the last 10 years is likely to be affected, the FSA estimates up to 20 million adults in the UK have some form of Mis sold PPI.
One of the biggest forms of mis selling by banks is when they have sold to PPI to nurses, members of the armed forces and anyone employed by the government with a long term sick pay system - as your employers have a scheme that looks after you, many policies exclude a payout on these very grounds!
If you are one of the thousands of people who have had a PPI mis sold then you could be in line for a payout worth thousands of pounds and get your money back.