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If you have taken out a financial product in the last ten years such as a mortgage, personal loan or credit it is almost certain that you were sold payment protection insurance from your lender. PPI ideally covers your ability to repay your debt should you find yourself in difficult circumstances such as injured or unemployed, however, the lenders found a loophole and have been selling PPI to customers who were not eligible for the cover or who did not fit the particulars of the PPI they were sold.

By doing this, banks have raked in over 3bn and avoided making any payouts to people who did require the insurance. Although they were acting on an obscure technicality they have been deemed to be breaching the law and have faced backlash from the watchdogs. Some large banks have faced fines of up to 7m as well as the money they stand to lose from refunds.

The scale of this rip-off was fuelled by commission hungry salesmen who would often stipulate if you did not take out the PPI, you could not have the loan, which is wholly untrue. Some lenders only mentioned the purchase of PPI in the small print and by signing the contract you implicitly agree to pay for it, despite not being included in your original quote.

Many consumers where ineligible for PPI from the start but have still been paying for it, for example those above the age of 65 you will not be able to make use of PPI as they are above the age of retirement. Anyone who has paid for PPI over this age is legally entitled to a full refund.

Those who are self employed are considered to be in a less stable financial position than someone in full time employment and will not qualify for payment protection insurance, however, lenders will be more than happy to offer it to them with no intent to pay out.

If you have a historical medical condition the chances are you will be considered a high risk individual and would not be offered the insurance as you are more likely to be off work on medical grounds. As you can guess, the banks will be more than happy to sell PPI to you even with a medical record in their hand and you have no chance of using the cover.

If you have been mis-sold PPI like this or in any other fashion you are probably entitled to a refund, although you will have to chase the banks for this and it is often easier to het the help of a legal professional.

If you are looking for good PPI claims solicitors then talk to Donns LLP who can guarantee to help you reclaim PPI

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