Payment protection insurance or PPI, has become an addition to loans since 1974. Even then, misselling PPI policies were already prevalent. It has been estimated that there are twenty-two million loans that have been granted from then and ninety-five percent of them were taken out with PPI. Hence, if you have applied for a loan, mortgage, or credit card within that time frame, there is a huge probability that you could have been missold PPI.

There have been a lot of misselling tactics that have worked so well with some insurance providers. You may consider the following strategies in selling payment protection insurance and find out if you have a case of mis sold PPI.

• The lender tells you that payment protection insurance is mandatory. This is not true. PPI coverage is optional. It is up to the borrower if he or she wants to be covered by a PPI policy for the loan or mortgage he or she has taken out.
• Adding a payment protection insurance policy to the loan or mortgage quotations. This has been proven to be one of the most effective means of misselling because borrowers do not usually scrutinize the loan contracts or mortgage agreements that they are taking out.
• Approving a PPI policy without checking on your medical history. This often results to a worthless insurance coverage. This examination is important because typical PPI policies exclude existing medical conditions in the coverage.
• Approving a PPI policy without checking your employment status. This is another instance where an outright denial of a PPI claim is in order. A common PPI policy excludes those who are self-employed, working part-time, working on a short-term contract, or those who are not capable of working at any other job other than where he or she is in the meantime.

Payment protection insurance covers the repayment of loans, mortgages, and credit cards in the event that the borrower becomes incapable of meeting their financial commitments due to death, unemployment, and disability caused by illness and accident. This enumeration is exclusive. Hence, if you are interested in purchasing a PPI coverage, consider these and your financial status. If it is not likely that these circumstances may occur before you can pay out your obligations, then it is not a practical option. If you have enough funds in the bank to cover the repayment of your outstanding obligations, then it is not a sensible choice.

Payment protection insurance is never cheap. Therefore, be prudent in making your purchase if you need one. Shop around and compare quotes. Standalone policies are more advisable because they are cheaper. Do not be compelled to take out the PPI policies that the lenders are attaching in your loan contracts. You are not required to buy them.

If you have already purchased a PPI policy, and there is a great chance that you have been missold one, you can still reclaim your PPI. The first step that you must take is to make sure that you were really missold a PPI policy. This should be done promptly, correctly and completely. If you cannot ascertain this by the data that you have, get a copy of your policy from your lender to be able to review the contract details. The second step is to contact your lender and inform them that you have been missold a PPI policy. Be bold in your claim and do not show a hint of hesitation. State your reason clearly and why you believe that you are holding a missold PPI policy. Third is to go to the proper authorities if you cannot refund your PPI reclaim.