Anytime during the last few years, if you've been to the bank looking for financial help such as taking a loan for your new home, applying a credit card or arrange for an overdraft, you might have heard of the term PPI.
PPI stands for Payment Protection Insurance, which is a type of coverage that provides customers with a protection against mounting debt when they are unable to make their monthly installment or payment under certain unwanted circumstances.
Should an unfortunate event such as serious sickness, death, accident or unemployment happens, PPI will help repay your debt for up to 12 months on average, for when you have no income during that period of time.
But the fact is PPI doesn't always work the way it should in the real world and you should be aware that you as well as many other people might have been mis-sold during the time when applying for a loan or mortgage.
Let's take a look in detail the problems of PPI policy:
1. It definitely isn't a compulsory policy but some lenders use this to pressurize their customers.
2. Most people are actually not qualified for a claim, so banks are literally earning billions over the years because many customers couldn't meet their contract standards.
3. You might not be able to make a claim even under an unhealthy condition if you are still covered by your working company or other type of insurance policies at the moment.
4. According to the clauses of the agreement, you are not subjected to purchase of PPI if you are a student, self-employed, retired or if you have certain pre-existing medical illnesses.
If you recall yourself buying this insurance without being told properly about its policy or if you are not an eligible buyer, it's your right to get back your money as well as the interest paid. Hopefully with this information, now you will be able to make your PPI claims with the help of trusted advisors.