What is Payment Protection Insurance (PPI) and What Does it Cover?

The payment protection insurance is a type of insurance that covers monthly payments on mortgages, credit cards, loans and other various forms of credit. The insurance will pay out a sum each month if you have become unable to work and also if death or unemployment occurs.

Normally a payment protection insurance policy is done at the same time of when the credit or financing was done. Some individuals don’t realize that this policy is sold as part of their contracts when taken out for loans, mortgages, credit cards and financing for car loans.

When the insurance is included this helps the consumer that repayment is insured to be paid back in an unfortunate event not caused by the individual. This protection policy is not to be confused with any protection over the individual’s income.

The payment protection policy will only cover minimum payments for up to 12 months. After 12 months the individual will need to find other means to finish paying off the debt. In most cases, the 12 month period is long enough for the individual to have found another source of income to cover their debt.

How You Can Check if a PPI Was Added

Unsure if you had a PPI policy done then you can go through the provider you have financing or credit through or go online to receive a free PPI check. If you have the complete contract that you had signed you can go through it and see if the protection payment insurance was included on the deal you had made. If you cannot locate the policy in your contract; double check through the free services of a PPI check or through the provider.

Normally the protection payment insurance check can take up to eight weeks especially if you are trying to figure out several forms of financing and credit. Once you know if you had any PPI policies if you are unsatisfied on how it was sold to you then you have the right to make a complaint. There is the possibility to claim a refund on the payments you made on the protection payment insurance policy.

Examples of Mis-sold Protection Payment Insurance

• Was pressured in buying the protection policy or was instructed that you had to have it.
• Provider ensured you would have a lower rate if purchased.
• Provider instructed that the loan or credit application would be more likely accepted if you purchased the PPI policy.
• If the protection insurance was added without your constant or knowledge.
• The provider informed you that an existing medical condition is included and it affected a claim.
• If proper information was not provided that you would have to pay interest on the protection payment insurance policy that was added to the loan or credit.

You are able to put in your complaint and claim for a refund on the PPI policy through the provider or through the financial services for PPI policies.