Payment Protection Insurance or PPI as it is more commonly known is a repayment protector designed to protect consumers who borrow forms of credit. It has core benefits such as sickness, disability and redundancy cover for consumers who are eligible for its cover. The problem with PPI however is that it is an extremely lucrative insurance policy for those that sell it and that is the main reason why it has been mis-sold. It generates Billions of pounds annually in commissions for banks and lending institutions who sell these policies and this is attributed as the main reason why it has been mis-sold.

Banks and lending institutions used heavy handed selling techniques and often sold these policies to consumers who did not need it, did not ask for it and who will not benefit from it. As a result of this blatant mis-selling many lending institutions were heavily fined by the FSA after a review into the selling procedures took place. With these fines in place millions of UK consumers now have the legal right to reclaim any mis-sold Payment Protection Insurance policy they took out fro 2004 onwards. With the average PPI policy estimated at £2500 there is potentially billions in mis-sold policies to be claimed back.

Consumers who were sold any type of finance product including Loans, Mortgages and Credit Cards from 2004 onwards should check credit agreements to see if they have been sold PPI. If they have they should review the details surrounding the sale of the policy as they could be entitled to reclaim thousands in compensation. It was often sold to consumers who will never benefit from the policy and those that did not request it. Consumers who did request these Payment Protection policies and who could benefit from it can still make a claim if the Payment Protection Insurance details were not properly explained to them and if they were not told they could purchase it elsewhere.

Many consumers opt to use the professional services of PPI companies for the obvious benefits that they have. They will deal with claims from start to finish with no upfront costs or charges, they will take on claims on a no win no fee basis and usually there is no cost for unsuccessful claims. The benefits of using these companies and their expert knowledge of this industry has seen millions of PPI claims processed through such firms. Once instructed it is standard practice in today’s market to have a claim started and paid out on within a matter of weeks.