If you have taken out a loan, mortgage or credit card you may have taken out payment protection insurance. The purpose of payment protection insurance is to cover your loan or credit card repayments should you find yourself unable to work due to accident or sickness. In theory, this is a useful type of insurance for those who require it. Unfortunately, payment protection insurance has been widely mis-sold, due to the fact that many people already have existing cover in place or are unable to claim on the policy due to policy exclusions. This has led to many people considering ppi claims as a means of obtaining redress.

 

If you have been mis sold payment protection insurance, it is possible to claim compensation for any premiums you have paid in to date. In addition to any amount you have paid in since the policy commenced, you should also be entitled to interest on top of this amount.

 

So how do you determine whether you have been mis-sold this type of product? Well, first you would need to determine whether it has actually been added to your loan. If you check your loan agreement it usually states a separate amount for the payment protection plan. If this is the case, then you would need to find grounds for mis-selling.

 

Many people use the services of a claims management company to claim back the premiums they have paid into this plan. The advantage here is that you can rely on their knowledge and expertise to ascertain how the policy was mis-sold to you and to present a winning case on your behalf. What’s more, if they win your case they can check whether any compensation offer is a fair and reasonable one. This is important, since some offers made by financial institutions can be considerably less than what you deserve. Most claims companies do not charge an upfront fee, so there is nothing to pay if for whatever reason they are not successful with your claim.