PPI which stands for Payment Protection Insurance was sold to many in conjunction with a variety of loans, including credit cards and mortgages.

This type of insurance policy is designed to cover your repayments due to circumstances such as illness, accidents or redundancy. If the policy is claimed on successfully, an agreed sum of money is paid out each month which SHOULD fully cover, or cover a percentage of the payment due on your loan.

PPI Policy Terms

Typically the PPI policy will cover your mortgage or loan repayments for 12 or possibly 24 months.

In respect of credit /store cards, the monthly payment will at least pay the minimum owed each month. In some circumstances it might only pay a percentage of the balance outstanding. This means you are then still left to pay off the outstanding amount to avoid incurring additonal charges.

These payments will only be paid out if your personal circumstances are covered in the PPI policy you have purchased. This is amongst a few resons why it is crucial that you fully read and understand what cover you are buying and also ensure that the PPI policy meets your requirements as discussed. If you haven't already, you can check exactly what PPI cover you are buying, or have already bought by checking the key policy details. You can either do this yourself or seek guidance from your provider.

Within your agreement there may be overlooked factors that could mean that you're not actually eligible to receive monies from your policy. Meaning it wasn't fully explained to you, which inevitably is a mis sold PPI policy.

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