The controversy surrounding Payment Protection Insurance refuses to die down with an estimated 3 million people filing a claim under PPI. The compensation claims are likely to increase to £ 3.2 billion. The Financial Services Authority has issued several new rules, to address the recurrent complaints by consumers claiming that they were taken in to PPI, either without their knowledge or with incorrect or incomplete information.

Among the other guidelines, the FSA asks banks and lenders to educate their staff and retailers about PPI and also about maintaining a complaints book that details the complaints and claims under PPI.A lot many people are applying for a claim under a mis sell. For those who are not too sure if they file a claim under a mis sell, here are a few pointers that would tell you if you were mis sold a PPI.

• The most obvious fraud is when people who are not eligible for a PPI are sold insurance, for example people with a history of medical ailments like heart patients, diabetics, patients with a high blood pressure are not eligible for a PPI. Besides these, people who are self-employed, unemployed and retired cannot apply for a PPI. Also people who are eligible for a full sick pay (nurses, doctors, police personnel, armed forces) are not eligible for a PPI. A reclaim from any of these people would be rejected. When people who fall under any one or all of the above mentioned categories are not informed about their non eligibility, it amount to a miss sell.

• Another common fraud is when people are not informed that a PPI has been added to their account. Sometimes borrowers are coerced into accepting a PPI when they are told that a PPI would increase their chances of an approval. People with credit cards are most likely to be covered under the monthly premium policy. This would have been added to their account without informing them and the customer would have missed to choose the ‘opt out’ icon on the statement. If you think you are paying for PPI, but don’t know how to check, simply check your monthly statement.

• PPI does not allow for people who have reached the upper age limit (65-70) to apply. If you were in the upper age bracket and were sold the PPI, it is a mis sell and you can claim compensation.

Now that we have discussed what amounts to a mis sell, let’s discuss about what should be done, once you have realized you have been mis sold. You can apply to the company or lender which sold you the PPI, stating why you think you have been mis sold. If your request is turned down you could contact a claim management company, who would go through the case and let you know if your claim is legitimate and then file it. You could also contact the FOS, who would hear you out and make the appropriate decision.

Apart from the reclaiming you’re PPI, you could also apply for compensation for the mis sell. This would include returning the entire premium and other charges that went towards the PPI with a statutory interest of 8 % /annum.