Whilst you may be aware of what PPI is and how it was mis-sold, there is still a fair amount of terminology which surrounds the product and this can be confusing for those who are unfamiliar with financial products.
Considering the fact that the policy was mis-sold following unclear information, we feel that no-one should remain unsure about PPI or other protection products which may affect them. Understanding the meanings behind different terms is the first step in ensuring that you do not invest in the wrong product so here are a few terms which you should familiarise yourself with:
ASU – this stands for Accident, Sickness and Unemployment cover. It is an alternative name for Payment Protection Insurance (PPI).
FOS – this is the Financial Ombudsman Service. They are the independent body responsible for settling complaints about financial services. If we are unable to settle your claim with the bank or lender directly then we may contact the FOS on your behalf with your consent.
FSA – this is the abbreviation for the Financial Conduct Authority. They are the independent organisation who control and regulate financial services within the UK. They were one of the first bodies to investigate the mis-selling of PPI. They provide clear guidelines for organisations to meet and follow when it comes to working within this sector.
PPI – this is short for Payment Protection Insurance. It is an insurance policy sold alongside loans and other forms of credit to cover payments if the borrower is unable to do so due to sickness or unemployment. The policy was mis-sold to millions of people over the past ten years and if you have taken a loan, credit card, mortgage or other financial product in this time then you may be entitled to claim for compensation.
Premiums – this refers to the amount of money charged for the cover by the provider/lender. It is typically represented as a monthly figure.
Single premium policy – Instead of paying monthly for a policy, this was added as a lump sum to the loan amount. People who took this type of policy would have been paying interest on the loan and the insurance for the entire duration of the borrowing.