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. 

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.