What is Payment Protection Insurance (PPI)?

Payment Protection Insurance is a policy designed to cover your monthly loan or credit card payments (or a percentage of them) but only if you can’t work because you have suffered an illness or are involved in an accident, or because you have been made redundant.

It is also known as PPI, Loan Protection Insurance or Accident, Sickness and Unemployment Cover (ASU).

Am I paying for Payment Protection Insurance?

If you have a mortgage, loan, credit card, store card or have obtained any other finance in the last 10 years, you may have Payment Protection Insurance (PPI)

To find out if you are one of these people, check your loan agreement or credit card/store card statements to see if it includes PPI.

For loans, the PPI may be a single-premium policy, which will be shown on your loan agreement as a lump sum added to the loan.

For a credit card, PPI charges should be shown on your statement, as they will be added to your account every month.

How do I know if I
was mis-sold PPI?

Do any of the following statements apply to you:

- You didn't ask for PPI, but it was added anyway?

- You were told the insurance was compulsory or by taking it, you would have a better chance of getting the loan.

- You wasn't aware PPI was optional or that you could buy cheaper cover elsewhere.

- You were unemployed, retired or self-employed when you took out the cover.