Ever since The Guardian PPI expose in 2004, millions of people have claimed compensation for PPI, which is believed to be one of the biggest areas of enforcement by the Financial Services Authority. The FSI reports that until August 2010, nearly 3 million people have made PPI claims and the figure is likely to touch £2 billion. The number of people filing for claims is likely to increase to around 550,000 a year for each of the next 5 years. Last year alone the FSA, asked firms to re-open 185,000 old complaints that they had previously rejected. A number of banks including the Lloyds Banking Group have now stopped selling PPI on all of its brands.

For those who’ve already bought a PPI, but are doubtful if they’ve been missold a PPI read further to know as to what constitutes a PPI missell and how to file for PPI claims. Many banks do not allow claims from people with preexisting medical conditions (ailments like heart complaints, high blood pressure, high cholesterol, asthma, diabetes, back complaints and even migraine). When policies are sold without asking about your medical history you have a right to reclaim PPI. People with irregular, insubstantial or variable sources of income cannot apply for PPI. Even if you were employed the bank is required to ask you if you have plans to become self-employed, retire or to work casually. Also anyone who receives full sick pay when absent from work are not eligible to claim PPI. Thus people working in public sector, doctors, nurses, police personnel, armed forces, government and local authority employees aren’t eligible for a PPI claim. When people falling under these categories are sold a PPI, they are eligible for compensation.

Thus if you weren’t informed about the terms and conditions and exclusions, were not informed about the full costs of the policy, or were not given the opportunity to purchase a policy elsewhere you are eligible for a claim. Also if you had tried to make a complaint against a genuine PPI missell but were rejected, or did not agree to purchase the policy but were sold nevertheless, you are entitled to claim compensation.

Once you’ve decided that you are eligible for PPI claims you can represent yourself to the bank (and not the insurer) about the missell. If the bank does not entertain your request (which it will most probably) remember to get a letter of stalemate from the bank and move to the FSA that’ll help you claim compensation.