Introduction
Falling behind on mortgage, loan, or credit card payments can
have serious repercussions such as penalty charges, damage to
one's credit score, and even loss of property. Payment
Protection Insurance (PPI) is designed to help avoid these
repercussions by paying the insured's mortgage, loan, and
credit card repayments if the insured is unable to pay due to
unemployment or illness. However, it is essential to note that the
terms and conditions of this class of insurance are often complex,
strict, and riddled with exclusions.
Banks and insurers have also been criticized for mis-selling
policies to individuals who weren't aware of the optional
coverage or that they would never be able to file a claim. Over the
recent years, a number of lenders have been levied penalties for
poor PPI sales practices, including the payment of compensation to
all mis-sold policies. This article will primarily focus on loan
PPI policies.
