Ppi stands for payment protection insurance and until recently most people who got credit be it a loan or a mortgage were expected to take this out to cover themselves in the event that they could not keep up repayments.

It was an expensive add on that a lot of people taking it on did not actually calculate how much it would cost them over the whole term of the loan. It was generally quoted as a small monthly figure that if you work out the figures say on a mortgage of thirty five years adds up to a large amount. a hefty add on that you may never benefit from.

Only 6 percent of people ever claimed and then over eighty five percent of the people who did try to claim were turned down because they were not eligible to claim.

It was something customers were led to believe PPI was compulsory and it would enhance your chances of getting a loan it often was a box that you had to tick and was confusing as you did not understand the wording. It was rarely explain nor was it often checked if it was even valid that you could be eligible to claim but thousands of people took these insurances out believing that it was necessary.

Sometimes it was added without you even knowing. PPI, although sold as a safeguard for borrowers, may just be seen as a way for lenders to increase their income from selling loans, credit cards and mortgages and boost their own personal income with commissions

PPI policies sold by credit card companies, banks and lenders can be overly expensive and are sometimes forced upon the borrower as part of the approval process or hidden within the debt repayment schedule. Debts may be increased by up to a third when factoring in PPI payments this is a very expensive add on if you are already struggling with repayments. Some are so full of exceptions and exclusions that borrowers are often unable to make a claim if the worst does happen.

If you feel that, when you were sold your PPI policy, the salesperson failed to explain exactly what you were purchasing, or you were forced to take out the PPI policy by your lender, you may be able to claim compensation. This may even include all the payments that you made especially if you would not have been able to make a claim if you had needed to.