Payment protection insurance (PPI) coverage is not a bad product. The intent and design of this coverage is to benefit and even protect the consumer. PPI is purchased alongside mortgages, auto and personal loans and credit cards. Consumers opt for this coverage as an insurance policy against loss of income due to illness, accident or unemployment. If such an event occurs and a policy is in place, it can be used to provide the policy holder with the means to keep loan payments current until such time as he is able to reestablish an income and resume responsibility for payments.

The problem is that millions of PPI policies were sold in a manner that was not consistent with PPI’s design or intent. These policies were mis-sold by lenders all across the UK. They were mis-sold to millions of UK residents to the tune of millions and millions of pounds of premiums. Policies were mis-sold in a variety of ways. The most common include lenders adding PPI coverage to loans without the consumers knowledge and lenders coercing consumers into purchasing PPI policies by inferring or directly stating that their loan approval depended on it. Other consumers were sold policies for which they would never be eligible due to their health or employment status.  Fortunately, there are ways to fix this – make a claim and you might get your money back.