This indeed was a falsity and a measure to fool. In cases like these, the borrowers that did accept the PPI were charged a far higher priced policy than if they’d purchased PPI on their lonesome.
There’s been quite a little bit of debate lately about payment protection insurance, typically due to overzealous brokers using dishonest practices when selling it to clients. The term now utilised for this activity is known as mis sold payment protection insurance or mis sold PPI. In numerous cases of this mis sold PPI, the banks would lie and tell the potential loan borrower that they wouldn’t be granted a loan without buying the PPI.
Other clients may not even realize they were sold a payment protection cover. It might be a sensible choice if you had received a mortgage or loan and were never offered PPI to test and see if you’re paying for a policy you never concluded too.