PPI Jargon Buster
There are many words used when talking about
Payment Protection Insurance (PPI) that aren't very commonly known and are
effectively jargon. To help you out, here is a list of these words and their definitions.
ASU
FOS
Abbreviation for the Financial Ombudsman Service. The FOS is the official independent
expert in settling complaints between consumers and businesses providing financial
services
FSA
Abbreviation for the Financial Services Authority. The FSA is an independent organisation
responsible for regulating financial services in the UK. The FSA set the standards
that financial organisations must meet and they can take action against firms that
fail to meet the required standards. The FSA aims to ensure people are confident
in the financial system and receive the appropriate degree of protection when using
financial services.
Loan Protection Insurance
An alternative name sometimes given to PPI
PPI
Abbreviation for Payment Protection Insurance. PPI is an insurance policy taken
out alongside mortgages, personal loans, credit cards and many other types of finance.
A PPI policy is designed to cover your monthly finance repayments when you are unable
to pay them. PPI will cover you if you are made redundant or if you are unable to
work due to accident, illness or injury.
Premiums
The amount charged for PPI by the insurance provider (usually each month) for PPI
cover.
Single premium policy
A PPI policy that is not paid monthly, but instead added as a lump
sum to the amount borrowed at the time of obtaining finance. With a single premium
policy, the customer will pay interest on both the insurance premium and the loan.
- Apply to reclaim mis-sold PPI