With over £24 billion owed to consumers, banks probably aren’t pleased about repaying their mis-sold PPI debts. Unscrupulous sales tactics had forced many UK consumers that took out financing to sign up for insurance policies they often couldn’t use.
If you haven’t made a claim because you’re uncertain if you have payment protection insurance, this is a short guide to help you.
Mortgage Protection Insurance
PPI has many names. Mortgage protection insurance (MPI) may have different terms and conditions, but it is still payment protection insurance.
Bank employees usually indicate MPI as a requirement as mortgage products can take more than decades to fulfil completely. Do not fall for this trap. You have the right to choose whichever insurance product suits you for the same purpose.
Banks cannot make payment protection or any type of repayment policy as a requirement.
Card Protection Insurance
Card protection policies are a scam to begin with. Banks are required by law to discount all fraudulent usage of credit cards once reported, so consumers have no need for such products.
However, card repayment insurance is another thing. It can repay your credit card bills while you’re sick, have had an accident, or are unemployed. This insurance policy can be useful, but only if you are eligible for its requirements.
If you were mis-sold this form of PPI, you might be paying higher premiums too.
In general, payment protection insurance has the following characteristics:
It would often indicate an age bracket of 18 to 55 years old (employment years)
It protects you from medical troubles and sudden unemployment, usually repaying your insurance policy for 12 months.