March 16th, 2010 | 
Author: Here, in this blog I would like to explain you all the meaning of PPI (Payment Protection Insurance). What does it mean and how does it actually work?
In simpler terms, PPI can be defined as an insurance product through which a person is provided a cover for all the existing debts. There are various financial institutions who sell it as an additional service to a person taking up a loan. Payment protection insurance plan covers a person against a major accident, unemployment or any event which in turn causes in source of earnings for them.
Certain situations make the person unable to pay off the expenses in the absence of any permanent source of income. The entire concept behind this plan is great, but only if all the terms and conditions are followed by the lending institutions. In the recent past, there have been a number of cases where a mis selling of PPI has come to face and which further leads to the inconvenience for the borrowers as they are declared as not eligible for their PPI compensation claim. I had a similar experience in the recent past.
For me, it was the true case of mis selling of PPI, which of course I realized later on. It started when I approached to a lender for a loan. Along with the loan, they insisted me to purchase a payment protection insurance which is an add-on service provided by them. They mis guided me by stating it’s advantages alone. The terms were not made clear to me before selling the product.
This is where everything went wrong. The consequence of a deliberate mistake on the part of the lender, resulted in the rejection of my PPI compensation claim. I discovered that I was not the only target. In fact this practice has been followed at large with an aim to cheat the borrowers who seek a help from the UK financial market.
So, if you do not fall as a victim of a case of miss sold ppi, then make sure you read all the terms and conditions, even mentioned in that smaller print
Posted in PPI Claim