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Mortage Protection Cover or PPI is not compulsory, although it can be a condition of some loans. Mortgage protection Cover or PPI is often taken out at the same time as a mortgage, and it is often the mortgage lender that will sell you mortgage protection cover (PPI). It is not compulsory for you to take mortgage protection cover (PPI) from your mortgage provider, or from a company associated with your mortgage provider.
The Financial Services Authority (FSA) regulates the sale of Mortgage Protection Cover or PPI
The main purpose of the FSA is to protect consumers who purchase products like mortgage protection cover hence reducing serious abuses of trust and fraud.
The FSA provides a key link to a better sustainable mortgage market to the consumers of UK. The FSA has issued a new handbook explaining the necessary procedures to banks for handling PPI complaints. Besides, an open letter with a listing of the reasons for regular PPI mis-selling was released.
Mortgage payment protection insurance (MPPI) is the most common insurance to cover mortgage payments, but can be missold.
You may have been missold insurance PPI if you were told PPI was compulsory. You bank may have missold PPI to you to make more money out of you.