PPI is an insurance product sold alongside loans and is supposed to cover your payments, should you ever be absent from work due to sickness or redundancy and be unable to make them. However, in reality it is an extra way for the banks to generate income from you for a Policy that will often not cover you when you need it the most.
PPI has come under the scrutiny of the Financial Services Authority, the Citizens Advice Bureau, the Competition Commission and other consumer Watchdogs; who have all heavily criticised the sales process used by Banks to sell this insurance. Their reports have been so damning, that the Competition Commission have recently suggested the current way PPI is sold on loans should be banned
