Financial Ombudsman Newsletter July 2007
Payment protection insurance (often referred to as ‘PPI’) is intended to provide cover against risks that might lead to an individual having difficulties making the repayments for their mortgage, credit card debts, or loans. It is a feature of this type of insurance that it pays out for only a limited period and is seldom intended to pay off the whole debt.
Complaints about payment protection insurance have always formed a regular part of our workload and have tended – in the main – to involve situations where an insurer has refused to pay a claim.
Increasingly, however, we are starting to see complaints about other aspects of this type of insurance. These include complaints about the administration or operation of the policy, or about the sale of the policy by an intermediary (often the bank/building society or other institution making the loan or the provider of the goods or services for which the loan is being taken out).
The following case studies illustrate how we have dealt with some recent complaints involving payment protection insurance.here
Consumer Factsheet on PPI is here