It is undoubted that youhave heard about payment protection insurance – or PPI as it is commonly known – but do you understand what it is? Also, is it possible that you have a PPI policy but do not know? This has been seen to happen, and through no fault of the consumer.

To best explain PPI it is vital to know what it is, and the simple explanation is to explain that PPI is an insurance scheme intended to help you make payments on a credit deal should you find that you have to miss work and, therefore, have no income.

Not long ago a series of PPI claims from borrowers with PPI policies were noted by the people who regulate the industry, and these claimed that there had been examplesof the mis-selling of PPI by a number of providers, some of them high street brands.

Thanks to an inquiry into underhand practices within the personal finance sector many heavy fines were handed out to some of the perpertrators, and the uncovering of mis-selling of policies has led to a rise in the number of people making a claim as a result.

A frequent scam in the selling of PPI had been for the lender to convince the customer that they had to buy a package deal whereby payment protection insurance was supplied alongside the credit agreement. It is not true that the consumer needed to do this, and the practice is no longer permitted.

You may have a case to apply for a PPI claim if you find that you were not sold PPI in the correct manner. In fact, it was proced that many people were unaware they were paying for such protection, and in a few examples the policy supplied was not applicable to the person who it was for.

There is no doubt that the worldwide recession has brought abouta surplus in the number of people turning to PPI policies to ensure they pay their mortgage payments as jobs are lost all over the world, and we hope that the policy you bring into play in such a situation is applicable to your circumstances.

Making a mis sold PPI claim is something that none of us should need to take on, but prior to the recent revamp of the regulations there were many practices that led to policies being worthless. Such practices have now been written out of existence, and the revised regulations are devised to help the borrower more strictly than ever before.

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