Payment protection insurance (PPI), also known as credit insurance, credit protection insurance or loan repayment insurance, is an insurance product that enables consumers to insure repayment of loans if the borrower dies, becomes ill or disabled, loses a job, or faces other circumstances that may prevent them from earning income to service the debt.
It is not to be confused with income protection insurance, which is not specific to a debt but covers any income. PPI had been widely sold by banks and other credit providers as an add-on to the loan or overdraft product, but which in reality often offered little protection and was therefore worthless.
The Office of Fair Trading began to investigate a number of cases where PPI had been mis-sold and discovered that a large number of people may be owed thousands of pounds in compensation. Regulatory changes have now resulted in people being able to file a claim against their bank or financial company, to claim back the amount that they paid in PPI, even if the loan has already been paid off or cancelled.
A number of firms have been set up to reclaim mis-sold PPI. This is often done on a ‘no win, no fee’ basis. The Law Department also has the expertise to reclaim money spent on PPI, with the added benefit of being a law firm which is fully regulated by the SRA. We are also happy to offer our services on a ‘no win, no fee’ basis with excellent and competitive rates where claims are won. If you would like The Law Department to recover lost monies spent on PPI for you, please do get in touch.