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What does payment protection insurance cover?

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While you may have heard about mis-sold PPI on the radio, TV and phone, you may not know why you’re hearing about it – or if you have it. We explore whether you were eligible for payment protection insurance cover and what you can do to reclaim.

Payment protection insurance cover

While payment protection insurance cover is valuable to some, many people did not need or want it. Some were also not eligible to apply, despite being sold the product.

The insurance was designed to protect people in the event that payments on the original financial agreement could not be met.

People who fell ill or were unable to work due to circumstances outside their control could claim on this policy. For many, this would be a safe option, if the policy had been offered correctly.


The mis-selling occurred when advisers misled people on their need for the policy, or their eligibility for it.

Self-employed people were not eligible for payment protection insurance cover, however many were advised to take the policy. Advisers used hard-selling techniques to get people to sign up for the policy due to the high level of commission attached to the sale by the broker.

Level of commission

A case called Plevin brought to light one of the factors of mis-selling. Susan Plevin found that more than 70 percent commission went to the sales advisor from the broker. This shifted the duty of care from customer to broker as the broker offered a greater financial incentive.

More than 50 percent commission on any payment protection insurance cover is now deemed unfair and people are using this to claim for their mis-sold policy.

A recent landmark case, named Doran, saw the Courts award the entire commission. Previously, just the amount above the 50 percent deemed unfair was awarded. This has allowed our clients to receive thousands more than anticipated. We work with thousands of people to ensure they get back the money they deserve.

Do you think your policy was mis-sold, or were you unaware of the level of commission the broker offered? Get in touch for support and advice.