Close Menu
Finance Care Guide
  • Home
  • About Me
  • Contact Me
  • Content Writing
  • Submit Guest Post
What's Hot
Trade Gold

How to Trade Gold: Understanding the Different Markets and Strategies

May 16, 2025
Proactive Home-Owner

Genius Ways to Save Money as a Homeowner

May 16, 2025
Inherited a Property

Sell It, Rent It, Keep It? What to Do With an Inherited Property

May 16, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram Pinterest
Finance Care GuideFinance Care Guide
Contact Us
  • Home
  • About Me
  • Contact Me
  • Content Writing
  • Submit Guest Post
Finance Care Guide

5 Things You Must Know About PPI

Personal Finance October 8, 20133 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
credit protection insurance
Share
Facebook Twitter LinkedIn Pinterest WhatsApp Email

The insurance companies developed payment protection insurance to help people who are unable to make payments for their loans. The inability to pay can occur due to different reasons namely the borrower dies, loses a job, becomes ill or disabled, or faces other situations that prevent him/her from paying.

Basics about PPI

People also know PPI as credit protection insurance, or loan repayment insurance, or credit insurance. You can purchase this insurance product separately from the loan itself. The credit protection works for any kind of loans ranging from car loans to mortgages, credit card or other credit repayments.

PPI is an optional product, and you can buy it from finance companies or home mortgage borrowers. Although the consumer is the one that pays for PPI when the risk occurs, the company that extended the loan to the borrower is the one that gets most of the benefits.

With payment protection insurance, you can cover just a minimum amount for a short period of time (not more than 12 months). The financial companies assume that the consumer can find a way to restart payment in those 12 months.

Calculations

Usually, for lump sum loans the price you pay for payment protection insurance varies from 16 to 25 % of the amount you are borrowing. For credit cards, the charge is approximately 0.78 – 1 % from each 100 $ of your current unpaid balance.

How do you know if you have a PPI?

There are situations when people buy a loan from other people or finance companies, and do not know if the loan came with a PPI. Finding out if your loan has a PPI attached is pretty easy and does not take too much time.

If you have a credit card, you can follow in your statements all the payments that are taken, and see if any of them is going to PPI. If you have a personal loan, the only way to find out if you have payment protection insurance is by calling your lender and asking him about it.

Who can Re-claim PPI?

There are situations when the payment protection insurances have been mis-sold. Most of the times, it is very difficult to prove a mis-selling. If the insurance was sold to a customer that could not reclaim it under any circumstances, the case is quite clear and the mis-selling can be proved. Here are some of these situations:

  • The customer did not have a job when he took the insurance
  • The customer was suffering from a medical condition that kept him/her from working, and none explained him/her that the insurance is not a fit for his/her situation
  • The customer received a refund that was considerably less than the cost he/she paid
  • The entire cost of PPI or other costs related to it has not been properly explained to the customer, etc.

How much will you get back?

If you can prove that the payment protection insurance was mis-sold, you should receive the entire amount you have paid, plus interest. If the insurance was not mis-sold, but you did not receive a fair treatment when you wanted to cancel it, the company should re-calculate and you should receive a fair amount. This does not mean you will receive the entire amount that you have paid, but you should get a fair percentage of it.

Previous ArticleImprove & Protect Your Credit Rating
Next Article Best Debt Management Strategy

Related Posts

Inherited a Property

Sell It, Rent It, Keep It? What to Do With an Inherited Property

Achieving Financial Independence

5 Life-Changing Insights from Mr. Money Mustache on Achieving Financial Independence

Mortgage Appraisal Survival Guide: What Every Buyer Needs to Know

Don't Miss
Trade Gold

How to Trade Gold: Understanding the Different Markets and Strategies

By Peter ChristopherMay 16, 2025

Gold has long held its place as a symbol of wealth and stability. From ancient…

Proactive Home-Owner

Genius Ways to Save Money as a Homeowner

May 16, 2025
Inherited a Property

Sell It, Rent It, Keep It? What to Do With an Inherited Property

May 16, 2025
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Latest Posts
Trade Gold

How to Trade Gold: Understanding the Different Markets and Strategies

May 16, 2025
Proactive Home-Owner

Genius Ways to Save Money as a Homeowner

May 16, 2025
Inherited a Property

Sell It, Rent It, Keep It? What to Do With an Inherited Property

May 16, 2025
Digital-Only Savings Accounts

How Safe Are Digital-Only Savings Accounts?

May 8, 2025
About Us

We are one of the best personal finance platforms in the U.S. and writing focusing on the latest moves in financial markets, key finance issues, strategies, latest technologies, and emerging trends in investment, banking, personal finance, mortgage, and debt counseling.
We're accepting new partnerships right now.

Email Us: peter@financecareguide.com

Facebook X (Twitter) Pinterest YouTube WhatsApp
Latest Posts
Trade Gold

How to Trade Gold: Understanding the Different Markets and Strategies

Proactive Home-Owner

Genius Ways to Save Money as a Homeowner

Inherited a Property

Sell It, Rent It, Keep It? What to Do With an Inherited Property

Trending Today
Buying Your First Property

Are You Considering Buying Your First Property? Read This!

Debt Settlement

To Go For Debt Settlement or File Bankruptcy – What To Choose?

Home Warranty

How to Get your Mortgage Provider to Permit You to Sub-Let Rooms

Type above and press Enter to search. Press Esc to cancel.