What is it?

Q. What is Payment Protection Insurance mis-selling? How do I know if I have been mis-sold Payment Protection Insurance?

A. The fact is that many of the PPI policies sold to protect borrowers from their debt in reality offer no protection at all and are simply a further income for the lender. Borrowers may be unaware they are even taking out PPI as they go through the application process.

Lenders may offer low rates that are only commercially viable to them with the addition of a PPI policy and they may also mis-sell PPI policies with sweeping statements such as 'Will pay off your debt' or 'Will safeguard your family' when in fact the product they are selling may be completely inappropriate to the borrower and offer no such security.

Q. Can I claim compensation for Payment Protection Insurance mis-selling?

A. If you feel, that when you were sold your PPI policy, the lender/broker/bank/insurer failed to explain exactly what you were purchasing, or worse, you were forced to take out the PPI policy, you may be able to claim compensation. Also, if you were sold an unsuitable policy while self-employed, unemployed or retired, you may have a case for mis-selling as your circumstances at the time of sale would probably may mean that you could never claim on the PPI policy in certain circumstances.