Origins of Mis Sold PPI
Even with the rush towards the compensation of Mis Sold PPI by many people who have become aware that they their premiums can be refunded, many do not know how the situation came about. Insurance policies that guarantee payment protection incase a policy holder is unable to make payments due to illness or the loss of a job have been in existence for a long time. They have been of benefit to many who have found themselves in worse financial situations if they had not taken up the insurance. However, insurance firms as well as lenders did not provide full information to their clients who bought PPI policies, which has led them to be forced by the authority dealing with financial services (FSA) to provide refunds to their clients.
The FSA has placed fines on insurance companies that did not provide information to their clients, which informed them that the policies they offer on payment protection are optional. Secondly, these insurance companies gave false information to their clients which led them to believe that their chances for securing loans would be much higher because they had taken out a payment protection policy. Overall, customers were found to have been overcharged through the policies.

