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PPI Cover - the basics

- PPI stands for Payment Protection Insurance

- PPI Cover is taken out as protection when applying for a loan, mortgage, credit card, store card and many other types of finance

- PPI is designed to cover the policyholder should they find themselves unable to meet finance repayments as they have been made redundant or if they are unable to work because of accident, illness or injury

- Research by the Financial Services Authority (FSA) has found many cases where PPI cover has been mis-sold

Do you need PPI Cover?

PPI cover is only needed by those who don't already have suitable cover in place to protect their debts. Suitable cover could be an illness or redundancy package offered through your employer or Income Protection insurance. If you don't have alternative cover, it is worth taking out PPI Cover to protect your debts, in case you cannot pay them due to being unable to work. When properly structured, explained and sold, PPI Cover can provide worthwhile protection for customers against unexpected changes in their personal circumstances.

Do you have a claim for mis-sold PPI Cover?

If you have a mortgage, loan, credit card, store card or have obtained any other finance in the last 10 years, there is already a good chance you can make a claim for mis-sold PPI cover. Are you unsure whether you have PPI cover? If you have a credit card you can establish if you have PPI cover by checking your monthly statements, as it should be stated. If you have a personal loan, mortgage or any other finance, you should check the original agreement but it might not be so obvious. If in doubt contact your lender to find out if you have a PPI cover policy. You may be eligible to claim back payments for PPI cover, if any of the following cases apply to you:

- You didn't ask for a PPI cover, but it was added anyway

- It was implied PPI cover was compulsory or that by taking it, you would have a better chance of obtaining finance

- You wasn't informed PPI cover was optional or that cheaper cover could be purchased elsewhere

- You wasn't made aware of the cover exclusions on the PPI policy, for example: stress related illnesses and back problems

- If you were unemployed, retired or self-employed when you took out the cover, you wouldn't be able to make a valid insurance claim

- If you had a medical problem or illness at the time of taking out the cover that could have kept you from working, PPI is unsuitable insurance cover in this case

- If you were sold a Single Premium policy, you should at least be able to get a refund by cancelling the PPI cover

- Many policies have an upper age limit, usually 65 or 70. You cannot claim if you were older than this at the time of taking out the PPI cover

- You already have alternative cover that could insure your repayments such as income protection or an employer illness or redundancy package, but were not asked about this, you could claim

- If you bought PPI to cover a long term loan, there is a chance that the insurance will run out before the loan is repaid. Many PPI policies will not cover the full loan term; the seller should have explained this limitation. If they didn't, you can claim

Reclaiming payments made for PPI cover

Do you have a claim for mis-sold PPI cover? iSmart can help you to think smarter and recover any payments you have made. Apply online and our specialist team will immediately start the process for reclaiming your mis-sold PPI cover. Or if you have any further questions or require additional information about mis-sold PPI, you can speak to one of our specialist team on

0800 043 3025