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Should you have any type of mortgage, credit card or loan and are living within the UK, it is crucial that you check whether or not you have PPI, also known as Payment Protection Insurance. You could have never heard of it, but if you have debts then you may well be paying hundreds of pounds for it. In case you signed on for a loan which was “protected” then what that often means is that you aren’t only repaying your loan, but an extra insurance, referred to as PPI, to the banks. PPI purports to cover you in cases when you suffer an accident or injury that stops you from repaying your debt, it promises to repay monthly payments of the debt, under very strict circumstances, and in the event that you can not repay it.

Nonetheless, the problem is a growing number of people have been mis sold payment protection insurance. A number of people were advised that it was compulsory in order for them to be given the loan, and others were simply not told the exact fees. Many people might say that PPI is helpful to have, but there are some problems with it. First of all, PPI claims have some of the smallest payout rates for any kind of insurance; the firms very hardly ever pay when people thought they would. Secondly, many policies only protect you for a period of twelve months, causing you to be high and dry when this coverage expires.

As a result of all of this, a lot of people have claimed that their payment protection insurance was sold to them under false pretenses and have tried to reclaim the charges back, with good results in many cases. The FSA or Financial Services Authority in the UK has been fining many high-street companies within the premise that they have mis sold payment protection insurance and so have set a precedent for claims to be refunded. The risk to the companies and banks is the fact that, should they choose to not refund someone’s PPI, they stand the risk of being sued. Should that lawsuit succeed a precedent would be set which might permit a large number of people to demand their money back.

Therefore some banks and lenders are currently quietly paying off folks who claim that their PPI policy was sold to them unfairly. You can consult your bank or lender yourself or speak to a claims company who will do the same for you for a fee. Attempt to have all of your information ready, and keep in mind what the loan broker mentioned at the point which you purchased the insurance – did the make any promises that they should never have, and did they make the costs clear? If not, then claiming the money back may be a possibility.

More information on PPI claims and how to know if you were mis sold payment protection insurance may be found at Simplicity Claims.