The last couple of decades saw over 20 million people being sold PPI by banks and lenders. Loan PPI was highly profitable for banks and lenders earning them billions of pounds in profit.
What came to light many years later is that many of the loan PPI policies had been mis-sold to customers.
It was easier to sell loan PPI to customers compared to credit card PPI and other products because of the amount of money and the duration of the loan. Banks and lenders worked on the assumption that over a typical loan period of ten years, the customer may at some point be out of work. Due to this possible risk of unemployment and missing a repayment, pressure was placed on the customer to take out the loan PPI. Without the proper checks being carried out, this can be classed as mis-selling.
