how to know if you're owed PPI

There are many instances where PPI claims could be made and if you think you are one of the millions of Britons owed compensation for this kind of financial mis-selling you should very carefully assess your situation and consider your options.

Millions of pounds could be due to victims of PPI mis-selling; many banks have recognised this and have funds set aside for paying PPI compensation to those who were wrongly sold this type of insurance.

There is much talk on the subject in the media, but what exactly is PPI and how do you know if you have a claim?

Payment Protection Insurance is a type of cover sold alongside credit cards, loans, mortgages and hire-purchase agreements to protect the borrower if they are unable to make repayments. It covers situations such as illness or unemployment and may also be called redundancy protection, sickness cover, loan protection insurance or mortgage payments cover.

In most cases it is sold properly and professionally and is a very worthwhile form of insurance, giving peace of mind to millions of borrowers.

But in certain instances people have found they are paying for this cover without even knowing about it. In other situations people have agreed to take out the protection but when they have come to use it they have found out they are ineligible, such as because they are self-employed.

PPI claims could be made in these sorts of situations, and can also be possible in other instances of mis-selling, such as if the cost was not properly explained.

It can be difficult to establish whether you are due compensation, not least because of the different names the insurance is known as, but also because it can be difficult to prove that the person who sold you the cover knowingly acted irresponsibly, unprofessionally or illegally.

However, many financial institutions are prepared to pay back money in PPI compensation and actually have funds set aside to compensate those who have a valid case.

“Whatever the situation, if you think you have a claim it is worth looking into and getting expert advice,” says Matthew Briggs, CEO of www.claims.com.

“It might have been something as simple as not being told all the facts and figures upfront, it could be as obvious as not even being given the chance to opt-out of PPI or perhaps your employment status made you ineligible but the person selling the finance did not check that.”

The average PPI payout is £2,500, and many people get interest on the sum as well, so if you think you have a policy that was mis-sold you should get expert advice.