PPI (Payment Protection Insurance) is insurance that covers your repayments if you cannot meet them for any reason, for instance accident, injury or being made redundant from your job. Payment Protection Insurance may have been sold to you on any credit product including loans, credit cards, store cards, mortgages, car finance etc. It was mis-sold in many cases and you may be able to make a PPI claim to get your payments back!
PPI can add up to 40% onto your loan repayments and this is nearly all profit for the banks which is why they often wrongly pushed people into adding PPI to a credit agreement. In April 2011 the banks had a decision regarding the selling of payment protection insurance go against them and they have now set-aside billions of pounds for compensation payments. Lloyds TSB have set aside £3.2bn and RBS a massive £1.05bn to deal with PPI refunds. These are two examples which show the magnitude at which PPI was mis-sold to consumers across the industry.