In theory PPI (also marketed as Accident, Sickness and Unemployment cover or ASU for short) is designed to maintain repayments on borrowings following certain events, as implied by the product description

FACT	Premiums often exceed interest by over 200%
FACT	1 in 4 claims are rejected without payment
FACT	You cannot be forced to buy PPI on a loan

These policies do not cover the self-employed or short-term contractors. It is important to read the small print before proceeding to purchase the policy. Insurance cover sold to a self employed person or to a short term contractor is usually a mis-sold payment protection insurance policy which will give rise to a successful compensation claim.

It is now a well-known fact that as many as 9 out of 10 of the biggest lending institutions include the cost of PPI/ASU in their repayment quotations. Some lenders may add the full cost of the insurance to the loan up front, rather than charging it monthly thereby accruing additional unfair interest. Hundreds of thousands of people are entitled to make a mis sold payment protection insurance claim for compensation.

As long ago as 2000/2001, one major high street lender made over £250 Million (equivalent to 10% of its world-wide profits), enjoying a 70% profit margin on the price paid by its' customers totalling over £350 Million.

In September 2005, Citizens Advice Bureau commenced a `super complaint' to the Office of Fair Trading, calling on them to launch an investigation into the mis-sold payment protection insurance claim scandal, whereby an estimated 20 million PPI policies are in force, which produce annual revenue in excess of £5 billion, many of which may have been mis-sold.

Nearly all sectors of the consumer credit market from mortgage lenders and hire purchase companies to major high street banks and credit card companies enjoy the spoils. The pursuit of profitability comes at a price to the consumer when PPI may often increase the cost of borrowing by around 9% a year.

Borrowers are often sold completely inappropriate policies when they take out credit agreements. In many cases, pressurised selling practices and inertia selling are used to ensure people purchase policies which they neither want nor need nor benefit from.

Even when consumers do make a successful payment protection insurance claim on their policy, the amounts paid out do not ensure they remain debt-free; some paying out for only a year and then only in respect of minimum payments. This is a particular problem for vulnerable consumers, who are also at greatest risk of encountering financial difficulties.

The majority of consumers rarely understand the products and aside from mortgage protection, these policies represent poor value. More often than not, they proceeded at the insistence of their (often unscrupulous) lender.

If you are one of these unfortunate people who were mis-sold payment protection insurance, you may be entitled to compensation and you should contact us now. You only have one opportunity to make a claim and if you get it wrong you may lose your chance to claim compensation forever.

Why not get expert support to help you secure the maximum compensation you deserve using our no-win no fee service? We call upon experienced lawyers, accountants and actuaries to assist our claims team and can advise at an early stage on the prospects of recovery of compensation. If you would like free advice on our no win no fee compensation scheme just complete and send the contact form or call the helpline and an experienced financial claims adviser will discuss your potential claim at no cost and with no further obligation.

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