Payment Protection Insurance: Where Do I Go From Here?

Payment Protection Insurance: Where Do I Go From Here?

by Rebecca Hall on 13 Oct, 2011

A worrying aspect of the tens of thousands of reports involving people who were mis-sold PPI is the number of times it was attached to a loan without the customer’s knowledge. PPI Claimline has dealt with numerous individuals that, in all probability, saw PPI as an unavoidable part of the package when applying for their loans in the first place.

Various details about this type of insurance were not explained properly, if at all, to many people and customers were kept in the dark over whether it really applied to them and how necessary it was. PPI Claimline can assist you with any queries you may have over payment protection insurance, how it was sold to you and what grounds you may have regarding any PPI claims.

It is becoming increasingly obvious that a lack of knowledge and understanding of PPI and how it works has been the cause of a great deal of unnecessary payments being made as part of loan attachments. Many packages were being put together as part of loan repayment structures, and these often lacked clear and defined guidelines over payment protection insurance and how it worked. Consequently, a large number of people appear to have purchased policies which they may not have needed or wanted in the first place.

Payment protection insurance is a controversial issue in the modern day for a multitude of reasons. This kind of insurance is a good idea for people who find themselves in challenging circumstances when carrying out repayments. There are a number of positive examples where PPI has served a very important purpose for such people. However, the key point is that there are also an increasing number of examples in which a PPI policy was used recklessly and unnecessarily. For people who are applying for mortgages and credit cards for the first time, the whole experience can be daunting and confusing.

These people are essentially putting their faith in the hands of the sales person they are dealing with, therefore assuming they are receiving valuable advice at every stage. It has become increasingly clear, though, that as the amount of cases where PPI has been mis-sold have stacked up, the techniques employed by sales people are being called into question. Reports have emerged of people being misled into believing they had an improved chance of being given credit if they took out insurance. Such tactics are a perfect example of why the issue began to spiral out of control and why so many policies were sold without sufficient reason.

Banks have also been accused of selling policies to candidates whose circumstances meant they were unsuitable. The nature of PPI means that it exists as a back up plan should your individual circumstances change and you require financial assistance.

The statistics are alarming and people certainly seem to be becoming increasingly concerned and aware of their old policies. If you think there is reason to doubt how important PPI was to you and you took your policy out within the last ten years, it is definitely a good idea to check into it. You could be entitled to reclaim some charges and, at the very least, you will be able to put your mind at rest. The PPI Calculator on the PPI Claimline website can assist you with any complex arithmetic regarding mis-sold PPI.

About the Author

Rebecca Hall


Rebecca Hall worked as an independent mortgage adviser for 10 years before turning to financial journalism full time. She has strong links to the CAB advising families on mortgage refinancing.