The £5 Billion 'Protection Racket' Uncovered - PPI Misselling

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As the UK economy comes out of recession and we start to count our banking casualties; LloydsTSB, RBS, Northern Rock just to name a few, some even more frightening financial news is about to come to light.

The Citizens Advice Bureau (CAB) has branded Payment Protection Insurance a 'Protection Racket' and we are only just seeing the tip of the iceberg - PPI misselling is estimated to be valued at £5 Billion.

Payment Protection Insurance or also known as PPI is an insurance product which is usually sold by the bank or lender when you take out a credit card, loan or mortgage. It is supposed to cover your repayments if you become ill or made redundant.

There are strict rules when it comes to selling Payment Protection Insurance that lenders need to adhere to. One of these rules is that the suitability of the PPI, if it is sold to someone who does not need or could not claim on it, then this is classed as a mis sold PPI policy and could deem not just the PPI but the whole credit card, loan or mortgage invalid and written off.

There are many circumstances where the PPI becomes invalid including:

* You were out of work or self employed at the time of taking out the policy.
* You were led to believe that you must take out a PPI policy in order to obtain the loan.
* You weren't made aware that you could choose PPI from a cheaper third party supplier,
* The person who sold you the policy didn't make you aware of any exclusions that may disqualify you from making a claim.

Individuals who have been a victim of payment protection misselling could be eligible for a payment protection claim or compensation.

The CAB estimates that there could be over 20 million mis sold PPI policies adding up to £5 Billion.

If you think you have been mis sold payment protection insurance then you should get your policy assessed free of charge.

Innovative Finance are a leading independent specialist in Payment Protection Compensation and PPI Claims. We offer no obligation advice on Payment Protection Misselling and work with you on a No Win No Fee basis.

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