Tips on Claiming Payment Protection Insurance that is Rightfully Yours

Cases of Payment Protection Insurance (PPI) mis-selling have been creating quite a big furore for the past few years. With only a few percentages of the claims filed being given right compensation, the upheaval does not seem to have chances of quieting down in the near future. But the different types of resources that are available now for customers make it easy for them to make a successful claim.

Payment Protection Insurance


Payment Protection Insurance and its Mis-selling

PPI or payment protection insurance is the policy that is offered along with a store card, credit card, loan or mortgage you take. The objective of the PPI is to protect the repayments in case you are unable to pay them because of accidents, unemployment or ill health.

Though this sounds perfectly a normal type of cover, the mis-selling occurs when you are sold a PPI that is not right for you. For instance, if you are unemployed at the time of taking the policy, it is not right as it covers only people who are employed full time. Or the age eligibility may not have been right. If you find out that your policy has been mis-sold, you are eligible for a refund when you make a claim.

Who is eligible for PPI claims

The first thing you need to do when you know that you have been mis-sold is finding out whether you have a PPI which was sold to you without your explicit knowledge. Here are some tips.

  • If you are using credit card for payments, you can easily know about any deductions done towards the PPI in the statements you get.
  • In case of personal loans, this however cannot be detected. In such a case, you can contact the lender to check on the PPI.
  • If you find that the policy has been sold without any chance of your claiming, it is then a clear-cut case act of mis-selling.
  • If you had some medical problems that may have prevented you from being employed, the unsuitability of the insurance should have been told to you, and if not, you can go for a claim.

PPI Cancellation

In instances where the entire loan cost is paid beforehand which is borrowed at an identical rate like the loan or otherwise in single premium type of policy, it is possible for you to apply for compensation by cancelling the PPI. Even if you had the loan cancelled or finished repayment of loan early, but are still paying for the PPI, you can certainly make a claim. For more information, you can visit

There are cases where the whole PPI expense was not informed to you clearly, or you were told that it was compulsory. In those cases, you can get your refund. Cancellations of the insurance but with the loan redrawn at rates that are not advantageous to you also come under mis-selling. If the refund on cancellation is also not what is due to you originally, a claim is certainly achievable.

When you have confirmed about the mis-selling, you can approach the lender by yourself, or through a claims management service, or also use the Financial Ombudsman Service to recover your money.

Author Box:


Simon Forbes is your finance guide who helps you make a successful claim in PPI cases. For more information on basics, he suggests visiting

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