What is Payment Protection Insurance (PPI)?

Payment Protection Insurance (PPI) is a financial insurance product that is designed to cover mortgage, credit card, loans or other debt repayments if the policy holder is unable to make repayments in certain circumstances, i.e. redundancy, sickness, accident. PPI is also known by other names: Accident, Sickness & Unemployment (ASU), Loan Protection, Account Cover, Credit Insurance and Loan Repayment Insurance. It was generally sold at the same time the type of credit was taken out; it can also be purchased as a “stand alone” policy. Each different policy can vary significantly in the benefits it supplies.

Obligations of the Adviser or Sales Person for mis-sold PPI

How was this service mis-sold?

Compensation

Single Premium Policy with a Loan

Regular Premium PPI policies (i.e. Mortgage PPI)

Additional Information

Useful Links & PDF’s

Redress for mis-sold single-premium PPI attached to a loan

Provided by the Financial Ombudsman Service

The assessment and redress of payment protection insurance complaints – Consultation Paper

Provided by the Financial Services Authority

The assessment and redress of payment protection insurance complaints – Policy Statement

Provided by the Financial Services Authority