PPI is payment protection insurance and was sold with certain credit financial products. Basically, if you applied for a credit card, received a loan, took out a mortgage or decided to acquire any other type of credit including car finance you might have been sold a PPI policy as well.
A PPI check is verification of any of these financial products to determine whether the loan has a PPI, especially one you did not know about.
An In-Depth Explanation
If you acquired a PPI upfront on the amount you borrowed on a loan you acquired before 2009, the amount was added to the amount borrowed and paid off during the course of the loan. However, this single premium PPI policy was banned in 2009 and lenders were prohibited from selling it after that. Yet, despite the banning of PPI some loan products continued to have the service added to a loan.
The Purpose of PPI
The service was sold as a type of conditional insurance. If you lost your job, fell ill or otherwise could not go to work, the PPI would pay for the missed payments of the loan.
PPI Was Mis-Sold
Not all PPI policies were mis-sold, however many of them were. PPIs were often sold in the following ways:
You did not agree to a PPI but it was included in the loan
The financial product service company did not make it clear that you were investing in a PPI
You were informed that unless you took out the PPI, you would not get the loan or credit.
In 2017, a court case found the PPI to be unfair and the commissions too high. In 2017, the FCA implemented new rules for financial businesses to follow with regards to PPI
How to Get A PPI Check
The PPI was often sold with:
Credit cards
Mortgages
Personal loans
Store credit
Loans
Flexible loans
Point of sale loans
So if you have any of these types of loans, you could have PPI. Your credit agreements or statements might have the PPI agreement stated. Some financial institutions renamed the programs to something like:
Credit card repayment coverage
Credit card payment protection
Mortgage payment protection
If you are unsure of your PPI status, contact the credit services company and ask them. If you are still unsure of the status contact us. We will analyze each individual case and decide based on the information given whether the business acted unfairly when they sold the PPI.
Read more info at free PPI check.