Payment Protection Insurance is an insurance that protects people when they have to pay loans and have no means of paying it. Having the insurance is an assurance that one will have the capability to service a loan even in difficult financial times. In the recent past, there have been cases of mis sold PPI. This is when the policy is sold under false pretences or one cannot claim when he feels the need to. This can happen in several ways and customers need to be aware of this in order to prevent more cases of mis sold PPI. The company selling the policy does not ensure that the policy holder is conversant with all the terms and conditions of the policy. This includes the reasons for having the policy and whether it is important to the customer.
Some customers have been told that the policy is a must. This has mainly happened at the point of sale. In actual sense, PPI has never been compulsory for anyone. This has been used as a trick for gullible customers. People without full-time jobs are not eligible for PPI as they will never be allowed to claim. However, when selling the insurance, students, unemployed, self employed and retired people are allowed to take the policy only to realize later that it is useless. People with certain health conditions are also ineligible for PPI. These include those with history of stroke, diabetes, heart disease and back ache. Anyone with any of the conditions that buys the policy is actually mis sold PPI.
People have been mis sold PPI under false pretences. For example, they are cheated that having the insurance guarantees someone of getting a loan. On the contrary, this is not true. People are also cheated that they can only take the policy at the beginning and from the same company. However, one can take it any other time and from a different company all together. People who are covered elsewhere are also cheated to take the policy.