Mis Sold PPI: What You Ought To Know
A few years back, there was a financial and economic problems that banks and other financial institutions went through. These financial distress and problems brought numerous and countless banks, quasi banks and other financial institutions experienced monetary problems. In fact, most of them went bankrupt.
So in order to rehabilitate and save these banks and other financial institutions from complete shut down, they offered the public some sort of insurance policy that the public can avail of once they desire to make a loan. This insurance policy was known as the payment protection insurance policy or ppi policy.
However, this mis sold ppi policy was carefully designed not to make any payments even if the supposedly main purpose of it was to cover the repayments, debts and other obligations that the borrower owes due to the fact that he has loss his means of income because of an illness, accident or unemployment. This policy was mandatorily provided to the borrower even if he does not want to avail of it.
Hence, this policy was known as mis sold ppi policy due to the fact that even if the borrower does not want to avail of such policy, still the banks attached it to the loan without the borrower’s consent.
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