As soon as a person is struck by misfortune such as involuntary unemployment, disaster resulting to his/her disability, Payment Protection Insurance or PPI, covers loan payments/repayments in case a person lost his employment, or unable to work because of disease, accident and disability.  PPI can come with virtually every type of loan whether it be money loans, credit card loans or mortgage loans.

Loans that come with PPI ought to be beneficial to both parties (lender and borrower) because it gives lenders the profit they need to cover the debt and it protects and ensures borrowers that they will be covered by the insurance in case something unfortunate happen to them.

Sadly there are a lot of news where unsuspecting customers have been fooled or pressured into buying PPI at elevated costs or they don’t need.   In the UK, thousands of people have prepared claims and complaints against their financial lenders because of fraudulent and misleading PPI mis-selling.

So what is considered as mis-sold PPI?  Mis-sold PPI only differs on how it was sold.  Others say that their banks insisted on purchasing PPI for the loans they took, or else they will not be approved for the loan.   The fact of the matter is, PPI should be optional and should not be forced to somebody getting a loan.  Just like a car insurance, it is up to the customer whether he or she would get Payment Protection Insurance or not.  Furthermore, it’s bad enough that people are forced to get unnecessary PPI, but it gets even worse if the insurance alone is over-priced or not declared to the client.

Those who have existing health problems, unemployed, self-employed o retired are mostly not allowed to get PPI or covered under PPI claims.  Hence if someone sold them PPI knowing that the person they are selling it to is under any one of these position, the PPI deal is null and void to start with.

Luckily, customers who want to claim insurance, particularly loan insurance claim, are backed by the Fraud Act of 2006.  Further good news is that England’s Financial Services Authority (FSA) and the Financial Ombudsman Service (FOS) have been diligent in prosecuting institutions with complaints from customers regarding mis-sold loan insurance claims.

PPI claims, together with the assistance of financial aid establishments have granted thousands of people their just claims and have deterred fraudulent insurance practices.

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