The sorry story of mis-sold PPI

The tale of the banks' latest scam

by Jeremy Southfield, 16th September 2011

PPI, which is also known by the alternative moniker of Payment Protection Insurance, in addition to being referred to in many other ways, was discovered within recent times to have been mis-sold to many individuals who were customers of various financial institutions.

However, now the time is upon those aforementioned entities that they are able to ensure that they receive recompense for the losses which were inflicted upon them by those high street banks with whom they elected to deal, and it is now the case that millions of pounds of the UK currency have been ringfenced by those banks in order to ensure that they are able to pay out the vast sums which will be required in order to appropriately compensate those customers to whom PPI was mis-sold.

PPI is a form of loan insurance, which is a system whereby one is able to pay a sum of money each month in addition to the sum required in order to continue paying back the loan to guarantee a safety net if the insured individual should suffer from an unexpected loss of income which renders them unable to continue making the repayments on said loan.

In such an event, in theory, the borrower's Payment Protection Insurance will then grant them a sum of money which will enable them to keep up these repayments and thereby not default on their loan, preventing them from facing too many financial issues in their time of monetary paucity.

However, many of those who did opt for this cover found that the PPI had been mis-sold to them and they were not in fact covered for this eventuality due to exemptions or loopholes.

It is this kind of individual who is now able to make a mis-sold PPI claim and have the financial institution in question return to them the outlay they presented to the broker for the questionable protection of PPI.