Payment protection insurance is an insurance policy that is often sold along with a single premium policy to protect them against any repayments. Normally, PPI is used to cover the minimum fee of your debts in instances where your ability to earn income is cut off due to unexpected circumstances such as sickness, accident, unemployment or death. Although the purpose of this insurance policy is to do good by helping people meet their obligations on time even in times of financial difficulties, there are still lots of instances where it cannot be used.

One of the problems that you may be facing is being saddled with a ppi policy without your knowledge. There are lots of insurance companies out there that attached PPI to the loan you have taken out without giving you any heads up or proper information at all. This is one of the reasons why your loan repayments could be quite high. Not only are you paying the loan you have taken out but you are also paying the premium on your PPI policy.

And another thing, payment protection insurance is not just for everyone. Although it is designed to protect your payments when needed, there are certain aspects to it that may not be suitable for your needs. For example, the company you have been working with gives you an insurance policy that covers sickness and accident but the PPI policy you took out covers also sickness and accident. This means that you have redundant policies already which definitely cost you more.

So if you think that you were mis-sold payment protection insurance, then perhaps you should consider claiming this money back. Many UK banks have now set aside large sums of money to compensate those who have been wrongly sold this type of insurance. You can make a claim even if the policy is no longer in force, whether it was on your loan or credit card. It won’t affect your credit rating and you could be due £1000s in compensation.