Explaining PPI
PPI is known by many names. PPI stands for payment protection insurance and is also known as mortgage protection insurance, loan protection insurance and credit protection insurance. The purpose of PPI is a more difficult to describe than what the acronym stands for.
PPI coverage is available to consumers when they apply for mortgages, auto or personal loans, or credit cards. The intent of the coverage is to provide consumers with peace of mind. In the event of an unforeseen circumstance such as an illness, accident or loss of job that results in a loss of income, PPI coverage can be enacted and funds made available to meet monthly payments. This assistance remains in effect until such time as the consumer is able to resume responsibility for the payments.
The design and intent of PPI coverage is to benefit and protect the consumer. However, in the last several years many lenders have mis-sold this coverage. Consumers have suffered financially due to this mis-selling. It is vital to know that PPI coverage is always voluntary. Lenders should never add coverage to a loan without a consumer’s knowledge or coerce a consumer into purchasing PPI coverage. And if this has happened, there are legal steps that you can take to get your money back.
PPI coverage can benefit you. Do your research and make the purchase that is right for you.