Information about your Mis-Sold PPI

Many people have been miss-sold Payment Protection Insurance (PPI), or have been given loans or credit with PPI already included by various lenders and finance companies without being aware of it. This has been reported in the press over the past few months. However, if this type of insurance cover is appropriate for your needs, then it will give peace of mind and a certain amount of financial protection against adverse circumstances.

These adverse circumstances could be the result of an accident or an illness, or redundancy or some other reason for the loss of income. PPI is designed to cover repayments on your borrowings for a preset period. This type of cover is sold along with all kinds of financial borrowings, such as transactions with credit and store cards, and various secured/unsecured loans.

Before taking out Payment Protection Insurance with your loan, you should examine the policy to see what benefits it would give you. Some lenders may insist or pressure you into taking this cover, but it is always optional. You can always take out finance without cover, and you should make your own considered decision.

A good Payment Protection Insurance policy can bring worthwhile protection to borrowers and removes the stress of failing to meet repayments because of adverse circumstances. If you were unable to work for a period of time because of redundancy, or sickness or an accident, your PPI would cover your payments and prevent damage to your credit rating.

It is not essential to take out Payment Protection Insurance when you arrange a loan. But PPI can give the peace of mind and financial security that many borrowers will need. PPI varies greatly in price and conditions and with some providers will be quite pricey. You are not bound to take your PPI from the lender, who is providing your loan, and it is a good idea to list your requirements and shop around for the best price.

Certain groups of workers should think carefully about paying for PPI. Many people would get no benefit from insuring against missing payments because of redundancy. PPI may be completely unsuitable for these people and they could be needlessly throwing money away.

When you receive your quotation from the loan or finance company, you should examine it carefully. You will need to establish whether or not a section has been included for PPI. Some lenders add PPI to their finance quotes as a matter of routine, and many people have paid for this cover without knowing.