If reports from the Financial Services Authority are to be believed, there are about 3 million Britons, who were sold PPI, by banks and financial lenders through mis-selling or non disclosure of vital information. The total PPI reclaims is believed to be worth around £2billion. Although the Compensation Commission has now introduced a ban on sale of Payment Protection Insurance at the same time as credit cards, loans and mortgages, there is much to be done to help victims of PPI.

For the uninitiated, PPI or Payment Protection Insurance covers debt payments when a person is unable to pay back his debts due to unforeseen circumstances like accidents, illnesses or loss of job. Although these are commonly sold with a variety of financial products, almost 90% of policies sold relate to unsecured loans, credit cards and mortgages. These loans are commonly disguised under different and fancy names like loan or credit protection, accident sickness, and unemployment cover. When banks or financial lenders sell PPI, claiming a ‘no PPI -no loans’ clause, the consumer is eligible for compensation and may make a PPI claims to the Financial Services Authority.

Also, if a consumer has a policy running and was sold a PPI within the past six years and it had expired, the consumer has a legitimate ground to claim compensation. To do so, he would need to produce the original papers related to the insurance plan. As earlier said, when the seller gives the consumer no other option than the plan provided by him, the consumer is liable for compensation from the banks. Also if the seller hasn’t read out the terms and conditions that include a cooling off period he is liable to pay compensation.

PPI is also often missold to people with preexisting medical conditions like heart complaints, high blood pressure, asthma, diabetes, high cholesterol and even migraine, fully aware that insurers reject claims for PPI with these medical conditions. Also people with an irregular, insubstantial and variable source of income cannot claim PPI, whereas banks and mortgage companies have sold PPI to a number of people falling under this category.

Once, you’ve ascertained that you are eligible for a PPI; the next step is to then file for claims with the bank. If the bank is unrelenting, you could get a ‘deadlock letter’ from the bank and proceed to the Financial Services Authority to file a claim for compensation. You may also contact a PPI Claims Company would help you reclaim the full PPI premium, the interests and commissions that go along with it.