If you have taken out a loan with any high street bank, taken out a hire purchase agreement or even opened a credit card, then it is likely that you also took out payment protection insurance with it. If this is the case then you may be entitled to compensation.

Sometimes it was added without the knowledge or permission of the borrower. The purpose of Payment Protection Insurance is to cover the payments you have to make on a loan or credit card when you are unable to keep them up due to sickness, unemployment etc.

There are many situations when this insurance doesn't actually provide the cover you need. For example, if you were unemployed, retired or even self employed at the time of taking out the policy you are ineligible to make a claim on this policy which makes it a total waste of time and money for you.

The first thing to do is check whether you have a claim,did the sales person go through the process fully with you? Did they follow the procedures below?

They should have:

1.Explained the full process to you.

2.Told you the Payment Protection Insurance (PPI) was optional and NOT compulsory

3.Explained the terms and conditions in full

4.Explained the total cost of the PPI to you

5.Asked you comprehensive questions on your employment and health situation.

If they didn't do any of the above then you may have a claim.

Write to your lender directly using one of the free complaint templates freely available online or use a claims management company (if using a claims management company be sure to check they are registered with the ministry of justice).

If your lender denies mis-selling the Payment Protection Insurance you can refer your complaint to the Financial Ombudsman Service http://www.financial-ombudsman.org.uk who will investigate it further and if necessary order your lender to pay back any premiums you may have paid.