There is so much controversy around the topic of payment protection insurance that this product has spawned a new industry: reclaim agencies. Many consumers who were sold policies are now trying to get their money back. They have many online resources to turn to as the topic continues to heat up.

Payment Protection

Payment Protection is insurance against a specific loan. This loan could be your credit card debt, a mortgage, car repayment or some other arrangement. You are being protected for only the loan that your plan specifies, not regular bill payments such as telephone or electricity fees. The situation you are being protected against is the inability to make repayments under particular circumstances.

For instance, you might become ill and therefore not go to work for such a lengthy period of time. An accident might leave you unemployed with a disability. Your company could make you redundant. Not all policies will cover all of these eventualities. There is disability insurance specifically, or you might take out a PPI which only covers you against a loss of earnings due to redundancy. Certain policies cover both of these potential events if you search carefully.


What some people are discovering, according to insurance experts, is that they have been  mis-sold their policies. Reclaiming PPI payments becomes their next goal. If you do not know how to reclaim PPI payments, rest assured that there are bodies which can help with that and are actively doing so for others. Even if you think you should be safe because your lender is an established institution, read the small print once more to be sure you got what you bargained for. You could be surprised.

It turns out that even some of the most well-known institutions are guilty of mis-selling policies. There are as many customers reclaiming PPI from them as from other institutions. One thing consumers are complaining about is that they had no idea they could look for independent lenders. They thought their policies had to be sold by their mortgage lenders, car dealerships, or credit card companies, specifically. In fact, as with any kind of insurance arrangement, there are independent operators offering competitive rates, many of them online. Consumers who are currently looking for new policies are advised to keep in mind that they need to read all small print very closely, but to do this research before arranging a loan.

They are also advised to read their loan contracts to ensure that they are not sold a PPI without knowing it. Authority insurance websites write that some people have been paying for policies as part of their borrowing agreement.

Legal Help

Get legal help if you are going to make a claim. This is a complex topic, one where insurance agents are bound to argue that they cannot possibly make repayments in full to every person who makes a claim. This happened a decade or so ago in the UK when mortgage holders made claims against mis-sold endowment mortgages. Consumers who wrote and pestered their banks received compensation, but it was limited. If you can hire a solicitor who will not charge unless she wins your case, then this is the best option. Although it is often cheaper to hire someone to take your case than to continue paying hundreds of dollars in PPI, legal fees are still steep. Just ensure that your lawyer is highly experienced in this area of law.

The Good News

As for customers who are now shopping for PPI, not all policies are mis-sold. They can be life saving for individuals who face a sudden loss of income, yet continue to have a family to support. Moreover, the same rule applies to this kind of arrangement as to your various loan agreements: you, as the customer, are responsible for reading all of the details of a plan. Make sure you really will qualify to place a claim in the future if something goes wrong. Remember that existing health conditions disqualify you from receiving money if an illness flares up. Also, the way in which you lose your job matters. You are not covered if a short term work contract ends, or if you are fired from your job.