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A few years ago, there has been a financial and economic distress and difficulty that prominent banks, quasi banks and other financial institutions encountered. These banks and other financial institutions had a difficult time reviving their companies.

However, these financial institutions had a plan that requires its clients and customers to avail of an insurance policy. In other words, the bank’s clients and customers when making a loan needs to avail of an insurance policy called a ppi claim.

However, this ppi claim is often referred to as mis sold ppi claim. It is referred to as mis sold ppi claim due to the fact that this ppi claim is mandatorily attached to the borrower’s loan. In other words, before the client or customer can receive his loan, he is required to avail of an insurance policy before his loan may be granted or given to him.

As a result, the borrower not only pays for his monthly payments that he owes due to his loan. But, the borrower is also required to pay for the monthly premiums in order to fully receive and to be benefited from the insurance policy. Hence, the borrower is burdened with numerous and various debts and obligations.

A few years back, financial institutions such as banks and other quasi-banks experienced financial and economic distress. In other words, the company was about to shut down and go down the drain.

As a result, in order to save and rehabilitate these banks and quasi-banks, they thought of providing ppi claims to the public especially those who intend and desire to make a loan. A person who borrows money from the bank is not only getting his loan but also these ppi claims.

These claims are a sort of insurance policy that are intended to cover the monthly repayments and other debts of the borrower due to the fact that he has loss his means of living because of severe and serious illness or accident or because of recent unemployment. In such a case, the banks and quasi-banks promised to answer these troubles provided that the borrower avails of these claims.

However, even if the borrower was not informed of such claims and even if he did not consent to the claims, still, the banks attach these claims just the same. Hence, they were considered as mis sold because of the fact that borrowers, clients and customers of these banks and quasi-banks did not know what they were getting their selves into once they make a loan or borrow money from a certain financial institution.

Payment Protection Insurance claims and complaints are continuing to rise as more and more people are becoming aware that they may have unknowingly been mis sold ppi.  The decision by the high street banks and lenders to put ppi claims on hold pending the outcome of the Judicial Review has only increased the borrowers’ appetite to fight for their ppi reclaim

PPI claims sounds like a good idea as usually if you ever pays out following a PPI claim and have been mis sold in many cases to people who can’t even take advantage of it.

This means that you could really have paid for something you could never use.

PPI (Payment Protection Insurance) was sold to many unsuspecting consumers alongside loans, credit cards and mortgages. If you have ever taken out a credit card, loan, mortgage or car finance, you may have been mis-sold Payment Protection Insurance which means you could be owed thousands of pounds in compensation. Many people were mis-sold PPI because they were not informed about the cost of the policy and in many instances the policy was not suitable for their circumstances.

Payment Protection Insurance is intended to wrap monthly loan or credit card payments (or a percentage of them) when you cannot work for you have suffered an illness or are involved in an accident, or maybe because you have been made unneeded. It is also known as PPI, Loan Protection Insurance or Accident, Sickness and Unemployment Insurance.

The PPI industry is worth £5bn thanks to over 20 million PPI policies in the UK, however, there is rising evidence that customers have been mis-sold PPI, by buying policies that they do not understand, wrongly being told that buying PPI is compulsory and in some situations being sold PPI without even knowing it.