Payment protection insurance is better known as PPI. It has been hitting the headlines in the news recently. In case you have not heard, this is insurance which is added on to loans in case you have trouble making repayments. Many people have been mis led into thinking these plans were not an optional add on. This means that thousands of borrowers in the UK have spent more than a third extra on loans such as house mortgages.
Thankfully the government has now told banks and other lending companies that they must repay these large sums. Anyone who has borrowed money may have unknowingly paid PPI on top of their repayments. Banks and other lending institutions have set aside billions of pounds in preparation for a wave of PPI claims. Loyds TSB has alone set aside a whopping £3.2 billion to refund mis sold insurance policies.
Many people were simply not told about these policies and the extra money was added without their knowledge. Others were told that they are compulsory, or necessary to get the loan approved. If you are unsure then it is certainly worth looking into. As much as 40% was added onto the amount to be paid back, so there is potentially a large sum just waiting to be refunded.
You can find more information about payment protection insurance at www.ppi.com. They have all the information you need to find out if you may be eligible for a refund. They also have a PPI claims service so that you can make a claim online and possibly get a refund, which could amount to thousands of pounds.