The Payment Protection insurance benefits the loan giving company more than the loan claiming person. It acts as a security against bad debts for them. This is the reason why the loan giving agencies encourage and try to sell you a Payment protection Insurance. The general terms they use is that it increases the credibility of the person needing a loan. In other words it increases the loan procuring capability of the person. A person is often misled into buying the policy even when it is not required.

Misleading people into buying this protection  policy , is termed as mis-selling. The Mis-sold PPI considered on following grounds.

1.When the person  does not know that he is actually paying for the payment protection policy

2.When the person is not fully made to understand the rule and how would apply to them.

3.When the credit record shows that the person is perfect in clearing his EMI and does not actually need a PPI

The payment to this policy is charged as a onetime payment. In some cases it is charged along with the premiums or EMIs. You can claim a refund for this policy.

 


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