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Payment Protection Insurance
Payment Protection Insurance (PPI)
What is PPI?
Payment Protection Insurance (often referred to as PPI) is an optional payment designed to provide cover in case you were unable to keep up your loan repayments due to illness or unemployment. PPIs are sold by banks and other financial institutions, usually added to the cost of a loan, credit card, hire purchase or overdraft. The cost of PPIs varies, typically being 10% to 50% of the loan value. In some cases the customer may not be aware that they have paid PPI charges.
Recently PPIs have been in the UK news because in 2011 the courts ruled that many PPI policies have been mis-sold. This means that these PPI schemes did not legally provide the insurance cover that they claimed. Therefore, providers have been instructed to pay back the money that was charged for mis-sold PPIs.
For further PPI information please follow the links below:
- Reclaiming PPI and TAX, including:
- Payment Protection Insurance (PPI) Facts, including: