What does PPI mean?

PPI stands for Payment Protection Insurance, which is a type of insurance that is designed to help consumers keep up with their loan or credit card payments if they are unable to work due to illness, accident, redundancy, or other circumstances. PPI is often sold alongside loans, mortgages, credit cards, and other forms of credit, and was widely mis-sold in the UK for many years. The mis-selling of PPI led to a major scandal and a substantial number of compensation claims. In the context of finance, PPI refers specifically to this type of insurance product and the issues surrounding its sale and mis-selling.