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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.

The Financial Services Authority (FSA) is now being challenged in the High Court over mis-sold PPI compensation.  The British Bankers’ Association (BBA) said that the new rules of FSA are not necessary because they are retrospective.  The FSA recently required the banks to review the past sales of PPI which could lead to compensation worth over £2.7bn being paid to almost 2.75 million people who have been mis-sold PPI policies.

The spokesman of the BBA said that the FSA is trying to impose new rules on the past sales of the insurance policies.  The FSA rejected this allegation and pointed out that these rules have been in place for a long time and are not new.

Payment protection insurance is not really a bad idea if only they were sold to suitable people.  It is supposed to cover the monthly loan repayments of the policyholders in case of serious illness or accident making them unable to work, or if they lose their job.  However, this didn’t happen and a lot of ppi policies were mis-sold to people who can never use the cover.  This was the start of the mis-sold PPI problems in the country.

Some of the banks and lending companies who have been accused of mis-selling this product were investigated by the FSA and their watchdogs and fined them so much for treating their customers unfairly.  If you have a mis-sold PPI and want to claim back your money for the payment you have made for a useless product, you can send a letter to your bank or lender and start claiming your compensation.  If in case they reject your request, seek the help of a specialist solicitor or the Financial Ombudsman Service to start your claim process.