Before one can understand the nuances of PPI compensation it is important to understand what PPI is and how it works. PPI, or Payment Protection Insurance, as it is formerly referred to, is a type of insurance policy cover, which provides funding cover for insurance policies that have been claimed, in the event that the insured party is unable to make the payments on their own. People who need a PPI cover policy are usually unable to make the payments on their own because they are unwell, unemployed or otherwise financially constricted.
Many people are unfortunate victims of different kinds of PPI related problems, from being mis-sold PPI plans wherein the plan might not be suited to their specific needs or they might not even actually need the plan. Other kinds of problems arising out of PPI policies is cases wherein people find out that the PPI cover that they have signed up for and are making payments on does not actually cover their needs. Whether you have been wrongly sold the PPI cover or it does not fit your needs, the bottom-line is that you are not at fault and hence deserve some kind of compensation on the payments you have been making on your PPI scheme and the expenses you might have incurred. PPI claims allow wronged parties to file for compensation should they feel that they have been incorrectly sold a PPI policy or that the finalizing process was not conducted with proper research and integrity.
You should think twice before considering to pass up an opportunity to file a claim for PPI compensation because PPI policies can be extremely expensive and can really set you back, especially in cases where they are not needed or are not case appropriate. The costs of taking out a PPI cover can range from anywhere between 13% and 56% of the total cost of the actual policy that the PPI cover is insuring.
An interesting aspect to applying for PPI compensation is to consider whether all aspects of the PPI cover actually apply to your case. If there are certain elements or parts of the PPI policy that do not actually come into use in your case then you might be entitled to receiving a compensation on these parts. The purpose of such measures is to ensure that you only pay for the parts that you use, especially when you have trusted an agent or lender to sell you an appropriate policy and guide you on the right path and you have instead been laden with a policy that is of little use to you.
Some of the things that you need to take into consideration when inspecting whether you are eligible to apply for PPI compensation or not include details of the insurance cover that you intend to provide for, whether or not the borrowed amount is being consolidated, the medical specifics, the single premium loan purchases and unemployment cover.