The saviour of many a person taking out finance and then finding themselves in the unfortunate position of being unable to repay their financial obligations. Payment protection insurance isn’t a bad thing. In fact, its very good, sold in the right way to the right people.

Payment Protection Insurance (PPI) is commonly sold alongside financial products such as mortgages, loans, cards and store finance. It is meant to give the purchaser peace of mind should they lose their job or suffer from ill health and not be able to meet their repayments to the company lending them the money. A great idea? Of course, but here’s the catch. Payment Protection Insurance is classified as a big risk. It can add up to 40% to the cost of your original finance, and also earns the seller big commissions, and I mean big!

So like everything in life that is good, it is also open to abuse. Therefore, it is no surprise to hear that in the last 5 years The Financial Ombudsman Service has been swamped with people who have been mis-sold ppi.

For many consumers it was a case of being told they had to have PPI in order to get the finance they needed. The sales person “prayed” on them. For others it was a case of being pressured into taking out PPI with a store card or when buying furniture. When times are good and finance is freely available even for those with bad credit the temptation for financial sales staff to offer such products must have been too good to be true.

Now times are tougher and people are scrutinising their accounts, it has become apparent that many people have been mis-sold ppi for many reasons. Not only those listed above but also some have been sold PPI who have had pre-existing medical conditions that the PPI policy would not even cover. Even if they made a claim the insurance company would turn it down.

If you have a finance agreement of any kind that was taken out in the last 6 years it is worth checking the payment statements, you may not even know you have PPI running alongside your normal monthly repayments. If you have and you think you have been mis-sold ppi you should take immediate action.

You now have the choice to approach the lender directly or use a claims management company. The choice is yours. Going it alone is free but remember the banks and lenders employ teams of highly paid legal staff whose job it is to deflect and ultimately reject your claim. PPI cases can be very complex and you need to have the time and knowledge to fight them. Alternatively, you can use a claims management company who has the legal backing to fight the policy seller for you. They may take a percentage of the payout in commission but this will be well worth it and better than nothing.

It is estimated that the average payout for mis-sold ppi is over £2000. This is your money and something you never expected to see. Even if you pay a claims management company their fee you will still get a lot of money back.

Some claims management companies charge up to 35% commission on successful claims and others want upfront fees before they even consider your claim. If you think you have been mis-sold ppi choose a company that only works on a no win no fee basis and charges a lower rate. Do some research on the internet and make sure you get a reputable company who will treat you fairly and not rip you off.

Remember PPI can be a good thing but you need to balance this with your situation and needs. The salesperson should have taken this into consideration at the time they sold you the PPI policy. You should have been explained the policy terms and conditions and exclusions. If you feel you have been mis-sold PPI then take action today.

Do not leave your commission in the hands of the financial salesmen. You do have the recourse to claim your money back if you take a little amount of time to make a claim and fill in the necessary forms. It doesn’t take long to get back £2000 of your hard earned cash.