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Archive for tag: Key PPI Terms Explained

Key PPI Terms Explained

The payment protection insurance (PPI) mis-selling scandal has been running for some time now. Like a good soap opera, it keeps rejuvenating its main storyline so that the good guys always win - the good guys in this soap opera, being the customers and consumer organisation that have fought long and hard to make PPI compensation a reality for the thousands of people duped out of their cash.

But when it comes to understand some of the terms and jargon associated with PPI compensation, it can be a little more difficult.

Here at Payment Protection Scotland, we have gathered all these terms together and endeavour to explain them;

APR - is a form of interest banks and lenders charge on product and is calledAnnual Percentage Rate. The higher the APR, the more interest you will pay back on your loan or credit card. You should get your premiums back and the interest charged on your loan or credit card and an additional 7% on top.

Generic term - this means that the term being used is a general one, a phrase or word that covers a whole heap of additional policies etc.PPI is a generic term; in other words, there are many payment protection insurance type policies but individual policies from different banks or lenders will be called different names, sometimes depending on what product they are meant to cover.

Examples include:

  • ASRI - Accident, sickness and redundancy insurance
  • ASU - Accident, sickness and unemployed insurance
  • CCI - Credit care insurance
  • MPI - Mortgage payment insurance

There are others too; if you are unsure, contact Payment Protection Scotland?

Letter of Complaint - this is the formal name given to the detailed letter or form you will send to your bank or lender asking for your money back. It sets out the reasons why you believe you were mis-sold PPI. There are examples available online or when you engage PPI Scotland to act on your behalf, we construct this as part of the claims package.

NB - Each account with PPI requires a separate letter of complaint. Your bank or lender assesses your account and your claim for compensation from the details contained in this letter.

Claims Management Companyor CMC - this is a company that acts on behalf of its client to make compensation claims. There are many companies who claim compensation for a variety of things, such as if you have been injured in an accident.

Payment Protection Scotland is a claims management company specialising in making compensation claims for mis-sold PPI. We charge a fee for our service, which can be found in the terms and conditions on our website OR, better still, give us a call and speak to one our friendly advisors.