1st step. Ask yourself, “Do I have it?” Many don’t even know that they have already bought a PPI, because this comes in many forms, guises and products. It is also known as credit protection insurance or loan repayment insurance and unemployment cover. Because it is often sold as a "vital" or “important” – some brokers and banks tell customers that no PPI means no loan, the only mention might be in the small print. 

2nd step. If you still have a policy running, or you were sold a PPI for the last six years but it has expired, you could still have justification for a claim. You might be able to claim further back than six years on a policy that has ended and expired, but you will need original paperwork as sellers are only obliged to keep records for six years. So it is important to keep your documents and read them.

3rd step. How do you know if you were mis sold PPI? Always bear in mind that a successful claim against the seller may depend on how the PPI was sold. Many purchasers have no idea why they were offered the plan. Or the seller may have told you there was no option if you wanted a loan. Check, also, that you were given the terms and conditions before you agreed and that you were offered a cooling-off period.

4th step. You may ask yourself, “have I ever claimed?” Even if the paperwork was immaculate, you have excellent grounds for a refund plus interest, if you can show you could never have claimed on all, or part, of the policy. All policies exclude payments to those who have retired – many also refuse to pay out in the months before retirement. Some have been sold to those already retired – more grounds for complaint. Equally, if you were a student or out of work at the outset and had no employment in prospect you could not claim, and so your policy has been mis-sold.

5th and final step. If you have any doubts over the selling of the policy or its value for you, don’t think twice, complain to the bank or credit provider or mortgage broker who sold the plan – not the insurance company. If they reject your complaint, see people who could be of great help to you, do not use a claims company, which will take a slice of whatever compensation you are awarded. 
 
In all kinds of insurance, some are claimed and some are discarded. However in the case of PPI, less are claimed, and more are rejected compared to other types of insurance. The very main reason for this is that insurance is underwritten at the sales stage and is taken out by clients without cautious evaluations as to whether it is right for their situation and condition and without watchful consideration to the policy eligibility conditions. 

People who try to find and buy a policy with no advice have little recourse, and alternative if and when a policy does not do well to them. However most PPI policies are not sought out by clients and in some cases clients are not even aware that they even have the insurance.

It is a fact that PPI is widely been mis sold, with this mis selling being carried out by not only the banks or providers but also by third party brokers. The sale of such policies is typically encouraged by large amount of commissions, and the insurance would usually benefit the bank or the provider with more money than the interest on the original loan. 

Certain companies build up sales scripts which guided salespeople say only that the loan was “sheltered” without mentioning the insurance or its cost. When challenged by the customer, they sometimes incorrectly stated that this insurance improves the borrower's chances of getting the loan or that it was mandatory. And here comes the disadvantage, A client in a financial difficulty is unlikely to further question the policy and risk the loan's being refused.

Many big companies with high profiles have now been fined by the Financial Services Authority for the widespread mis-selling of Payment Protection Insurance. Claims against mis-sold PPI have been slowly increasing. A customer who purchases a PPI policy may initiate a claim for mis sold PPI by complaining to the bank, lender or broker, who sold the policy.

The price paid for payment protection insurance can vary quite significantly depending on the lender. A survey of forty-eight major lenders found the price of PPI was 16-25% of the amount of the debt.

PPI premiums may be charged on a monthly basis or the full PPI premium may be added to the loan up-front to cover the cost of the policy. With this latter payment approach, known as a “Single Premium Policy,” the money borrowed from the provider to pay for the insurance policy incurs further interest, usually at the same APR as is being charged for the original figure borrowed, further increasing the effective entire cost of the policy to the client.
 
Payment Protection Insurance was invented to help people with Loans, Credit Cards, Finance Agreements and other credit transactions that if ever found themselves in the position where they couldn't keep up with their payments PPI could be used.

These insurances are intended to be used and consumed if there is a default in payment of the purchaser due to some events that are unforeseeable like if the purchaser become very ill and can not work, Lost his job, the purchaser faced accident and even death. But most of these insurance results from the fraudulent actions of credit providers that is why problems about mis sold PPI arise.

Mis sold PPI happens if the purchaser or buyer of the PPI does not know that he is actually buying the PPI without his approval or if the buyer is forced by the broker or other financial institutions to buy the product or else their loans or other credit transactions would not be granted. Mis sold PPI is about 20 million policies sold and gracious ten percent of that number is resolved. Compensation on the claims is pretty hard the price of the insurance is about 16 to 25 percent of the total amount of the debt or borrowings which too big for a worker who has an average salary or wage. Profits of credit and other financial firms rocket high because of these products.

There are institutions that help purchasers do the right thing in pursuit of their claims for compensation. These institutions guide those purchasers that did not know that they have mis sold PPI. They advice the purchasers and help them do the proper process in their quest for compensation mis sold PPI claims.

If the purchasers claim are successful and the credit and financial institutions notified the purchaser. The successful PPI claim will now be compensated. The purchaser will receive the lump sum amount of the policy plus charges and damages filed against them including the interest earned by the policy if the purchaser had already paid all the debt. If not the purchaser will receive the amount in accordance to the months or years paid on a monthly or annual basis. And for the next payment month the debt will be decreased by the corresponding interest rate for the policy earned. 

Early detection and prevention to these kinds of problems would lead to a better life without the problem of mis sold PPI get in your way.
 
Tremendous problems are faced by authorities about the issue of mis sold PPI. The authorities are burdened by this issue. Millions of complaints are being entertained by the authorities to ease the tension of the purchasers to the credit and financial companies that are involved in this chaos.

PPI are intended to be used and consumed if there is a default in payment of the purchaser due to some events that are unforeseeable like if the purchaser become very ill and cannot work, Lost his job, the purchaser faced accident and even death. 

Mis sold PPI is about 20 million policies sold and gracious ten percent of that number is resolved. Compensation on the claims is pretty hard. Because mis sold PPI claims that become successful depends on how the PPI was sold. It may be sold to the purchaser because the purchaser did not have any option to choose because he was forced to buy the policy. Or the seller or broker intentionally did not tell the purchaser or buyer about the policy being purchased in relation to personal loans and other borrowings. Or the amount of the policy is 16 to 25 percent of the total debt.

The commissions of the brokers are extremely huge. And companies sold PPI to their borrowers recorded 80% of their profit came from the sale of PPI. Most of the sales of the policy are due to the fraudulent action of the brokers that resulted to mis sold PPI. Purchasers that did not know the right thing to do about their mis sold PPI. Good thing there are institutions and persons related to the institutions that help the purchasers in the right track in order to claim their well off compensation.  The institutions guide them to do what is right and just compensation for themselves and fight for their claims for their mis sold PPI.

If the purchasers claim are successful and the credit and financial institutions notified the purchaser. The successful PPI claim will be compensated. The purchaser will receive the lump sum amount of the policy and charges and damages filed against them including the interest earned by the policy if the purchaser had already paid all the debt. If not the purchaser will receive the amount in accordance to the months or years paid on a monthly or annual basis. And for the next payment month the debt will be decreased by the corresponding interest rate for the policy earned.
 
It is a good thing to know that something that you have paid for would actually save you if something not expected happens like being ill or lose your job, because you won't have to worry about payments on a loan, credit card, mortgage or other credit problems. But if it is bought without the approval of the buyer the PPI will become mis sold PPI.

Payment Protection Insurance typically covers the borrower against an accident, sickness, unemployment or death, circumstances that may prevent them from earning a salary/wage by which they can pay their debts. It is helpful to purchasers who know the real application of the insurance in their loans. But to those who does not know it will have no use at all.

Mis sold PPI happens if the purchaser or buyer of the PPI does not know that he is actually buying the PPI without his approval or if the buyer is forced by the broker or other financial institutions to buy the product or else their loans or other credit transactions would not be granted. The price of the mis sold PPI is about 16% to 25% of the total amount of the debt or borrowings which too big for a worker who has an average salary or wage. Profits of credit and other financial firms rocket high because of these products.

Authorities are flooded with so many complaints about this controversy. There are over 20 million policies sold and most of the purchasers wanted to reclaim their mis sold PPI. Authorities are in difficulty on how to handle the massive complaints.

At this time there are about two million compensation complains being resolved and the authorities are working hard to address all the complaints of the purchasers in their respective credit and financial institutions. Mis sold PPI claims are not necessarily reclaimed due to reasons on how the product is bought. As stated earlier mis sold PPI are caused by the brokers or the credit or financial institutions fraudulent actions.

The successful claims will be notified and will be subjected to compensation. There are institutions that help purchasers in their quest for claims for compensation. Guide them in the right track in order to recover the fair and just claims allowed. The successful claims will receive the full pledged amount of the policy, the charges and damages and the interest earned entitled to the policy.