Common PPI Terms and Abbreviations
As you explore your PPI policy and reimbursement possibilities, you no doubt stumble upon abbreviations and terms that aren't clear to the average person. Here is a short, alphabetical list of the most common terms, abbreviations and acronyms you might find.
ASU: Accident, Sickness and Unemployment coverage. ASU is an alternate name for Payment Protection Insurance; it has no separate meaning.
BBI: British Banker's Association. The BBI represents the UK banks. The BBI resisted PPI repayment and challenged the court ruling requiring repayment of excess amounts.
CPI: Credit Protection Insurance. Another name for Payment Protection Insurance.
FOS: Financial Omnibudsman Service. An independent organisation whose sole purpose is to settle complaints between consumers and financial service businesses including banks, credit unions and other credit-issuing businesses. The FOS is not associated with the FSA in any manner.
FSA: Financial Services Administration. The FSA is an independent organisation charged with regulating PPI services in the United Kingdom. It is not bound by other countries' legislation, although there may be similarities. The FSA protects consumer rights and oversees the administration of PPI policies by financial institutions, ensuring their policies are fair, equitable and legal. The FSA has full legal authority to penalise those institutions who do not uphold standards or act illegally. The FSA and the FOS are separate organisations and not associated in any way.
FSCS: Financial Services Compensation Scheme. The FSCS fields and processes PPI claims if your bank or lending institution fails.
LPI: Loan Repayment Insurance. Another name for Payment Protection Insurance.
PPI: Payment Protection Insurance. PPI remits portions of loan and credit payments if you meet certain qualifying conditions outlined in each policy. PPI policies can limit total amounts paid, percentages paid and time frames of repayment as well as qualifying conditions of coverage. The consistent factor involved in qualification is that you are not at fault, whether related to employment status or physical status. PPI coverage is not indefinite, however.
Premiums: The amount due for PPI coverage that is added to the credit installment due, usually billed and paid on a monthly basis.
SPP: Single Premium Policy. Structured differently than a standard PPI policy, the premium total is paid in full at the time the loan is approved. Usually, the incremental amounts are dispersed periodically, and the borrower accrues interest on not only the loan but the insurance premium as well.
