Over the last few years, in the United Kingdom, The Financial Services Authority (FSA) has been looking at unfair practices of issuance of Payment Protection Insurance (PPI), and the methods of which it was sold to loan borrowers. Many large United Kingdom banks have been making a pretty penny off mis sold payment protection insurance.

PPI was initially created to help the loan borrower in the event they were injured at work, or became ill. This particular insurance would make repayments to the loan companies until they resumed work. At least half of borrowers deny coverage, however, the other half a good portion were not asked, they were just sold the policy and pay the premiums without even knowing.

Eventually, there were numerous complaints about the industry. Out of all the people that purchased PPI either knowingly or unbeknownst to them, only about 5% actually ever filed a claim. Even worse, the statistics show, that about 70-75% of those that did file PPI claims did not meet the terms set forth in the policy.

When the FSA got involved, careful investigation found that most times the lenders did not tell the borrowers all the information needed, such as criteria for a claim. It also found that a good number of these lenders would use scare tactics to persuade the borrower into agreeing. Quite a few lenders actually even added overpriced PPI to the initial loan quotations without disclosing what it was. Investigation also found that many lenders would add a lump payment to the beginning of the loan repayment plan. By doing this, the borrower would have no way of canceling the payment protection insurance.

There are some basic questions to ask if you feel you might be able to make a claim for your premiums. Some include the items we stated above, such as being told you needed to purchase the policy to obtain a loan, or if you were not told at all, yet were charged for the PPI; if you were not told of the terms prior to purchasing or if you were sold PPI and were self-employed.

If you any of this pertains to you, you are like many people whom were mis sold payment protection insurance and able to now file PPI claims to try to reclaim the moneys they paid for premiums. It is important to find a company that knows what they are doing in regards to reclaiming premiums. Don’t fall for any promises, they cannot guarantee they will get compensation; many legit companies will not charge any fees up front. Use due diligence when finding the best specialist in the field.