PAYMENT PROTECTION INSURANCE
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.
