
Glossary of Financial Terms for PPI Claims
There are many financial terms which we may not have heard of before, so do not know what they mean. To help the people understand what they mean, below is a list of the most common terms and acronyms with a simple explanation of what they mean:
APR: Stands for Annual Percentage Rate - the amount of interest a company charges
Arrears: Amount relating to missed payments to your creditors
ASRI: Stands for Accident, Sickness, and Redundancy Insurance/cover - a type of PPI
ASU: Stands for Accident, Sickness, and Unemployment Insurance/cover - a type of PPI
Balance Transfer: Transferring the entire balance of one credit/store card to another in pursuit of 0% interest rate for a fixed period
Bankrupt: An insolvency procedure to cancel debt
BBA: Stands for the British Banker’s Association, and is the voice of British banking. Its role is to promote and defend the banking industry that includes foreign banks
Broker: A middleperson that arranges finance or insurance
CCJ: County Court Judgement
CCI: Stands for Credit Care Insurance - a type of PPI
Claim: An action to pursue money potentially owed to a person
Claim Pack: Plevin pack which requires completing before a claim can proceed
Credit: A sum of money offered to allow an individual to make a purchase
Credit Card Number: The 16-digit number in the centre of your credit card
CPI: Stands for Credit Protection Insurance, a type of PPI
Cut: The amount of money that a firm will take from your compensation award
Debt Management: A programme to help consumers control their credit
Default: An overdue payment - usually 30 days after the pay due date
Direct Debit: A monthly payment facility made with a bank, that allows the transfer of money to a third party on an agreed date.
Employment Status: Means if a person is self-employed or employed, retired, disabled, unemployed or a student, for example
FOS: Stands for Financial Ombudsman Service - an impartial service that can deal with complaints about most financial services products. They can rule in dispute situations, providing the bank / financial organisation has had an opportunity to resolve the dispute first.
FCA: Financial Conduct Authority, a government body which has the power to regulate the banks and other firms who sell financial products such as payment protection insurance.
FSCS: Stands for Financial Services Compensation Scheme, who protect consumers when authorised financial services firms fail
GISC: General Insurance Standards Council
IFA: Independent Financial Advisor
IVA: Individual Voluntary Arrangement
LASRI: Stands for Life, Accident, Sickness, and Redundancy Insurance - a type of PPI
LASU: Stands for Life, Accident, Sickness, and Unemployment Insurance - a type of PPI
Letter of Authority: Letter granting a named party right of access to personal information, such as bank account details
Letter of Engagement: Letter granting a named party the right to represent you in a legal capacity
Loan Agreement Number: Unique reference number that identifies yourself with the financial institution/lender/issuer of the loan
LPI: Stands for Loan Protection Insurance - a type of PPI
Lump sum: a single payment of money
Mortgage Broker: A company acting on behalf of a mortgage lender
MPI: Stands for Mortgage Payment Insurance - a type of PPI
No-win-no-fee: Law firms helping people with Plevin claims will only charge if they are able to recover money for the claimant
Percentage: The rate per hundred charged. Before committing to a company insist on knowing what percentage cut will be taken
Pre-existing medical condition: The person taking out the insurance already suffered from a medical condition, this group were never covered by PPI
Premiums: The amount you pay each month or year, for PPI
PPI: Stands for Payment Protection Insurance, which is sold along with a loan, mortgage or credit card, so that if you cannot repay the original loan, for example if you lose your job, the repayments are covered
PPI Calculator: An online tool to calculate how much PPI compensation you may be owed
Reference Number: The number present on any finance agreement
Retired: No longer working, this group were never covered by PPI
SAR: Subject Access Request
Self-employed: A person who works for themselves, this group were never covered by PPI
Single Premium: A PPI policy that is charged upfront as a large payment
Store Card Finance Account Number: This is a retail operator credit facility which may be a loan or credit account card
The Lending Code: A voluntary code of practice requiring banks and financial companies not to mislead customers, to lend money in a responsible way and to act when things go wrong, among other things. Most UK banks have signed up to it
Unemployed: A person who is not in employment of any kind, this group were never covered by PPI