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There is a category of insurance that you may be paying for and not even know that you are. Kind of makes it hard to file a claim. Oh, you say, I know about all insurance policies I hold. Do you? Do you know that Payment Protection Insurance, under a variety of names, is included in the vast majority of loan, mortgage, financing (car loans, major appliances, and etcetera), overdraft and line of credit contracts? If not, this is your chance to learn a bit about Payment or Credit Protection Insurance.

Payment Protection Insurance, which is what this product is called when sold by banks and finance companies, or Credit Protection Insurance when it is sold by credit card companies, are supposed to make your payments for you if you become unable to make your payments due to such things as job loss, injury or sickness. The payments part of your monthly payments.

Are you covered if your Illness is part of a pre-existing health issue? In order for that to be the case, your loans officer surely asked you relevant health questions before he had you initial the PPI form that was part of you car loan financing agreement. If he did not, you may well think your payments are covered if your pre-existing health condition worsens, when you, in fact, are not. Suppose your employment is terminated and you are fighting for severance pay. Chances are a PPI claim would be rejected until the severance pay dispute is settled.

The problems with the way PPI coverage is sold start with the practice of allowing the policies to be sold by untrained agents; namely, loans and mortgage officers and agents, credit card purveyors and finance companies. These individuals, it was revealed when the regulatory agency charge with monitoring the United States insurance industry noticed that the rejection rate for claims for PPI benefits were being rejected at an alarming rate, were frequently guilty of intentionally misrepresenting PPI and CPI requirements and benefits.

The mis-selling of payment protection insurance takes many forms. The motivation for the mis-selling is, plain and simple, money. Commissions paid to banks, finance companies, et al, for their sale of credit and payment protection insurance are high; higher than is normal for most types of insurance.

It is not that there is anything inherently wrong with a lender wanting you to buy insurance on the debt. But there is definitely something wrong when the commission the lender makes on the sale of the insurance policy is greater than what the lender makes on the loan alone.

When a substantial portion of the return on a loan is realized by getting the consumer to agree to also purchase an insurance policy, the lending party is acting primarily as an insurance agent, not as a financier.

When we say mandatory, we get to the hub of the matter. When sellers are not sliding the PPI purchase agreement into the pile of documents you must initial when finalizing your credit transaction, they are often telling people they have to buy it or the loan will not be approved.

Simply sliding the contract by the consumer is not the only strategy used. A particularly objectionable tactic is misinforming the consumer that PPI purchase is required in order for the loan to be made.

Looking to get your cash back from mis-sold-ppi? Then visit www.PPIClaimsUK.co.uk to start your PPI claim today.