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Credit Cards

Do You Need Payment Protection Insurance?

When I signed up for my first credit card, I was asked during the authorization process if I’d like to be enrolled in a free trial of Payment Protection Insurance (PPI). The customer service representative told me this would be a good thing to be in as the program will help you cover you minimum payments in case of a financial crisis, like grave illness, a serious accident, or job loss.

PPI insurance will repay your debt as long as it is necessary. Different PPIs are available to cover different specific situations. If any of the aforementioned events happen to you, it is best to file a claim with the insurance company you have dealt with. They will analyze your case and if it’s approved, your debt repayment will begin immediately. This will protect you from repossession and ruining your credit report.

Mis-sold Payment Protection Insurance

Have I got PPI? Once you’re acquainted with PPI and its clear that you have PPI, then the next thing to ask is if you were mis-sold the PPI. After an amendment in January 2005, there are now various terms covering PPI policies. If you were mis-sold PPI, a lawyer can pursue and recover your payments to the program on your behalf. There are different no-win no-fee law firms beginning to pursue these errant lenders and banks through courts that used PPI as a business. Your eligibility to claim PPI should depend on the following conditions:

  • The person selling the loan or mortgage policy was pushy, coercive, and strongly advised the PPI cover.
  • PPI was added without knowledge or agreement.
  • You were informed that you cannot get the mortgage or credit without MPPI.
  • You were told that you had to take the payment insurance.
  • You knew you were soon to be unemployed.
  • Even though you were self-employed, the sales staff sold the PPI to you.
  • The age limit or retirement age for PPI cover is commonly at 65 years old.
  • You were not asked about pre-existing medical conditions you may have.
  • You were not told that these medical conditions affect the insurance coverage.

If any of these situations apply to you, then you may have been mis-sold with PPI and you should contact a solicitor or specialist lawyer for claiming on your behalf. Millions of individuals have been receiving letters from financial institutions or banks regarding a mis-sold PPI in the past. In this matter, it is important that you file a complaint immediately to avoid a bad credit record in the future.

PPI Coverage

There are many PPI coverages offered in the market and yet most credit cards and mortgage lenders only offer you to one specific company. There are several independent suppliers who provide online applications that you can complete in seconds if you decide you want to have PPI on your debt. Before you purchase a PPI for yourself, the first thing you need to decide is how long you wish to wait if you become unemployed or sick. This is known as the excess period offered in 60 or 90 days. In comparing the various PPI plans, it is important to search for coverage of monthly outgoings. Different providers offer various limits important for repayments. In comparing payment protection plans for different loans, it is also sensible to see a respectable and independent supplier. Seek an experts’ advice and talk out the adjustments for a favorable PPI coverage.

Claims Management Companies

Any PPI becomes useful whenever a buyer suddenly cannot pay the monthly bills for loans or mortgage. PPI covers payment up to two years, or depending on the premium amounts paid along with the other terms and conditions. In cases that the PPI are mis-sold, it is important to settle the matter immediately. You can ask professional companies with skilled and experienced lawyers to help you with this process. Having proper guidance can help you get back the full payment you made along with the interest, compensation, and the commission of the agent. Getting advice or help will increase the chance of recovering money from a mis-sold policy. You can check those credible companies by searching online. You can also check whether they are registered with Better Business Bureau to see if they are legal. Do not trust companies who seek an upfront payment before giving any advice. It is best to see which companies are credible for you to claim your mis-sold PPI.

My blogger friend, Hayley, had success in claiming back several thousand pounds, which they used very wisely to pay off more credit card debt.

Have you ever used PPI? Do you think you were mis-sold PPI?


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Erin Thompson

Erin Thompson spent years managing her own blog about budgeting and debt. Because of that, she has great insights not only about managing spending and borrowing but also about running websites profitably. When she's not writing articles for us, she's traveling and looking for new types of wines to try.
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The content on is for informational and educational purposes only. It is not financial advice and we are not certified financial advisors. strives to keep its information accurate and up to date, but it may differ from actual numbers. We may have financial relationships with companies listed on our site. We may receive compensation for the placement of sponsored products or services. We work hard to write authentic and accurate articles.