Information About Your Mis-Sold PPI

By Jonathan L Walker

Some really bad press has been printed recently, in relation to Payment protection insurance cover. This is largely due to the incorrect selling of such insurance, on behalf of lenders. Sometimes financial institutions don't even have the borrowers consent. When sold appropriately though, such cover can offer lenders ease of mind. The ease of mind given by the knowledge that they are protected from a variety of circumstances.

Payment protection insurance cover is more commonly known by its initials, PPI. Its major purpose is to offer you cover with repaying back a finance agreement, should you be incapable of doing so yourself. This could be due to redundancy or illness for example. The policy will cover you for a fixed period, and is sold with various types of finance, from store cards to unsecured loans.

Here are some things you should try to remember about PPI:

1. PPI is potentially of great value if you're taking out finance. It offers the contentment of knowing that if you cannot work and have a period of not being able to make payments, due to redundancy or an accident, then your payments will be covered. People worry about their credit rating being affected should they miss payments and therefore PPI is really useful.

2. There is no rule saying that you must have PPI. You can always just take out the finance. You do not have to have such cover. There are lenders out there that will say that this is the case but it is not. To allow yourself to make an informed decision, you should look at the personal benefits of PPI.

3. Should you take out PPI, and then you don't have to do so with your lender. Although it is not compulsory, a lot of people like the security it provides. You should though, remember that A PPI can prove extremely expensive with certain lenders and providers. The finance company that you take out the finance with does not have to be the company that you take out the PPI with. Therefore you should shop around a bit, and see which institution will give you the best offer.

4. It is not always the case that PPI proves beneficial. For some people it can end up being quite a waste of money. For instance, a self-employed person may be covered, but then finds that he has to make himself redundant. He would not benefit from the policy at all.

5. Some quotes seem horrendously inflated, and that's usually because they have already had PPI added to them. Causing people to unknowingly have PPI. Always check when you are given a quote, whether it does or does not have PPI costs added to it.

This article is written by Jonathan L Walker, on behalf of Claims Management UK, specialising in helping people with their Mis-Sold PPI