For a number of years now, the controversy surrounding Payment Protection Insurance (PPI) has made known to the public but loads of UK citizens are still misinformed and are still getting deceived in being forced to pay for non-comprehensive PPI.  

A lot of people who took out loans that included PPIs had no other alternative but to say yes to it due to the fact that they were led to think that it’s required or have to take out the PPI or else they won’t be granted the loan.  Loans ranging from mortgages, credit cards, etc. can contain PPI and a PPI’s main purpose is to help borrowers who unexpectedly come across the misfortune of unemployment or serious illness.

Owners of credit cards in the UK who have taken out PPI is estimated to be around 9.8 million.  More than 10% of them thought the conditions on their credit card are mandatorily included with PPI or the notion that they would be favoured by the lender if they were agreeable to the insurance.  

More than £900 million a year in revenue is believed to be made by lending institutions by selling Payment Protection Insurance.  Ethical business practices have been a rare attribute among many financial institutions and it’s no surprise if selling of PPI is still frequent given this kind of revenue.  Since PPI payments already gather in plenty of extra revenue to banks and other financial institutions, PPI claims made by people are being ignored or denied.  

A survey conducted revealed that the success rate of the amount of people who get compensated for their PPI claims is only 11%.  Lots of people who were denied PPI compensation are often denied because of their mode of employment or age.  Then again, lenders should tell borrowers of these aspects beforehand.  

Any person trying to obtain a loan should not be forced to get PPI as it is optional.  Borrowers should also be told from the start about the conditions of how one is covered or disqualified in a PPI policy.  Some of these exclusions include those who have their own business and those who are and more than 65 years of age.  Additional important information such as single payment for the insurance, interest rate, and paying interest even if the PPI expires should be made known to borrowers above all else.

If the lender neglects to tell new clients who fall in this categories about this guidelines, but still pushed the PPI to the borrower, it’s deemed as mis-sold PPI insurance.  

Several consumer rights groups and financial experts are criticizing PPI and those that offer them and essentially say that PPI is a downright rip-off and comparing it to snake oil.  With millions of UK consumer still struggling to revamp their finances, the last thing everyone need is an additional blow to their finances and PPI should only be set aside to those who want it and those who have a clear awareness of it.