Payment Protection Insurance (PPI) policies were designed to cover the cost of loan repayments in the event that you were off sick or became unemployed. They were mainly taken out with loans, credit cards, finance and mortgages. The big problem with PPI is that most people who were sold the policy didn't really need the cover and in many cases the policies were sold to people who could never qualify for a claim, such as the retired, self-employed and unemployed. Also, 18% of PPI policies have been claimed upon, but only 8% of those claimed have been successful. This is due to the varius excludings with the terms and conditions of the policies, which excludes back injuries and stress, which are the main two reasons for being off work. Due to the mis-selling by the banks and insurance companies you can now
It is estimated that over £10 Billion of policies have been sold and as many as 30 million policy holders may have a claim for compensation. Statistics indicate that as many as 8 out of 10 of these policies may have been sold incorrectly.