Ramblings about Corporate Finance

Payment Protection Insurance Has there been anyone in the UK who has not received a phone call asking them if they've been mis-sold PPI (if so I'd also like to know their secret). But what is PPI and why is it so important that Arnold Schwarzenegger's head is advertising it's claim deadline? PPI is an insurance contract which ensures loan or mortgage repayments will carry on in the event of one losing their job or becoming ill. It seems like a sensible and worthwhile contract. However, like many things relating to banks in the past, it was abused. In what ways was it a scandal? Expensive ; the PPI premium added considerable cost to the loan principal. Customers could purchase the same insurance contract from an independent provider for a significantly small total cost. So why didn't they? Mis-sold ; often PPI was sold as an 'essential' add-on to a mortgage or loan. It was also regularly added to loans without customer knowledge or sold knowingl