PPI WISE - What is payment protection insurance?
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What is PPI?


PPI policies were sold alongside a variety of credit including loans, credit cards, mortgages, car finance and store/catalogue cards - often without the customer's knowledge.

Payment Protection Insurance is a type of insurance designed to cover repayments on loans and credit cards in the event of an accident, sickness or unemployment. Often PPI was sold with a financial product without the customer's knowledge. PPI was designed to cover repayments in the event of sickness, injury or unemployment. However, PPI was mis-sold for various reasons:

• Consumers never asked for PPI
• Consumers did not want PPI
• Consumers did not know they were paying for PPI
• Some consumers did not need PPI

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