Payment Protection Insurance Scandal: When banks don’t play fair

PPI was mis-sold to thousands of borrowers who are now eligible for a refund

18:05 11 November 2012

Buying insurance is one of the things that can give you peace of mind. Life insurance, or property insurance, for example, will give you assurance that should anything happen to you or your property, you’re covered.

However, there are some types of insurance policies that are optional. This means that you have the option to sign up for them or not.

For the last two decades, several banks and financial institutions in the United Kingdom have been selling Payment Protection Insurance.

This insurance is designed to cover you for your monthly dues should you become unemployed, sick, injured, disabled or in the event of death.

On paper, PPI really looks good, but it has been a growing concern and more and more cases for reclaims of PPI have been successful. It seems PPI was exploited.

Banks and financial institutions have made billions of pounds by selling PPI to borrowers, arguably giving some people the impression that PPI is mandatory when it’s not.

Because of this, and due to the expose, hundreds and thousands of customers who were mis-sold PPI are now eligible for a refund.