What Is PPI And Why Is PPI Mis-sold?

Payment protection insurance ( PPI) is commonly mis-sold because it is extremely profitable for the banks selling it.

In fact, the cost of  PPI often far exceeds the interest paid on the loan. Additionally, only a small fraction of the money taken in by  PPI is actually paid back out again. In a June 2008 inquiry, the Competition Commission found that  PPI payouts for mortgages, personal loans and credit cards were 28%, 15% and 11%, respectively.

Contrast this with the 78% payout for auto insurance.

This means that for every £100 that you pay for insurance, £78 is paid out for car insurance while only £15 is paid out for personal loan  PPI. Therefore, the profit margins on  PPI are far greater than for other insurance types.

In order to take advantage of this profitability, bank staff members were strongly encouraged to sell you  PPI alongside loans, and risked pay cuts if they did not. This pressure caused many staff members to oversell  PPI and misrepresent the insurance. Even if you were taken in by overzealous sales staff and were mis-sold  PPI, there is still hope. It is Possible To Claim Back All Your  PPI Yourself. Just Take A Look HERE.

It is Possible To Claim Back All Your  PPI Yourself. Just Take A Look HERE.

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