Over these times of economic uncertainty, many

Over these times of economic uncertainty, many of us our feeling the strain on our finances, along with rising fuel costs, rising utility bills, rising food prices, and not to note the government spending cuts, this is barely surprising. These added pressures means that it is important to save money where we can, in order to receive financial compensations that we might not otherwise concern ourselves to get. For instance, many people were miss sold PAYMENT PROTECTION INSURANCE during the 1990s and early 2000s, and these people can fight for legal financial redress via a PPI maintain. Here we will discuss what PPI really is, and who is eligible to claim again money from miss sold PPIs.

PPI is the acronym of Protection Insurance, although there are other names meant for PPI, such as credit protection insurance and loan repayment, PPI is the most common term. PPI is a kind of insurance that protects the borrower from certain eventualities that may prevent them from being able to pay off the loan on time, or even at all. Payment Protection Insurance normally covers loans and overdrafts, and is does not cover credit card debts or mortgages.

Generally, banks sell PPI at the same time that the loan or overdraft is set up. Payment Protection Insurance typically covers the borrower against failure to cover repayment schedules in the event of sickness, unemployment, accidents, along with other extraneous factors that may prevent the borrower from meeting the terms and conditions lay out in the loan or overdraft agreement.

When banks sell PPI to their customers, they must ensure that borrowers understand that it is not compulsory, but rather an optional extra.

When a borrower opts to have Payment Protection Insurance on their loan or overdraft, the bank must outline clearly all significant exclusions that may render PPI claimsinvalid, for instance, many policies will not cover the borrower for a pre-existing medical condition. If the bank did not make clear the PPI exclusions, the borrower may be able to claim back any premiums paid on the insurance.

The lender (normally a bank) must explain several factors regarding the payment of the PPI. Firstly, it should be clear to the borrower that the cost of insurance is in addition to the cost of the loan. Secondly, if the PPI is payable in one single transaction, and there is no option to spread payment over the course of a repayment schedule, this too must be made clear.

If the PPI does not cover the lifespan of the loan or overdraft, the lender must stipulate this to the borrower. For instance, if the borrower opts for a 7-year loan, and the PPI covers 5 years only, the lending company must outline this stipulation plainly.

Before the 14th of January 2005, if lenders recommended insurance, they needed to issue a 'demands and needs statement' in order to justify their reasoning, if they did not, then a

is possible.