PPI is a good idea – it is supposed to guard you against the stress and worry of how you are going to keep up with repayments in the event you have an accident, become ill or are made redundant.

However this PPI can add between 13% and 56% to your loan amount yet only 4% of people actually claim and 4 out of 5 are refused usually blamed on small print exclusions and administration nightmares

More worrying though some people are sold PPI without even knowing it, as some sales people simply include PPI in their quotes for monthly loan repayments and people with store cards credit cards and catalogue credit could have paid out 100’s too without realising so check your statements !

PPI is extremely poor value for money with any potential benefits outweighed by the cost.

Many people can not even claim on their policy, the terms are tightly drawn so most of the instances where people hope they could claim they can’t

Most PPI will not cover you if you are self employed and unable to work, retired when you took the policy out. It won’t cover if you stop working due a medical condition you did not explain or were not asked about. It won’t cover you if you have to stop work due to stress of back problems – two of the main reasons people stop work.

PPI can be paid for upfront and the money is added to the loan you are taking out known as a ‘single premium’ so you end up paying interest on the PPI for the term of the loan. These policies though - are usually for a maximum of five years no matter how long your loan is for. If you have just checked your policy and realised you are not covered for the full term Morton Lloyd can help.

Then to make matters worse there is evidence of firms forcing people to take out PPI , they have said PPI is compulsory, they have refused to quote the cost of their loan without it, suggested it would significantly increase your chances of obtaining the loan if you purchased PPI and that your loan would be more expensive if you didn’t take the policy.

Because PPI policies earn providers a huge amount of profit, staff are encouraged to sell as many as possible and are well paid for doing so, thus meaning mis-selling is rife.