When a payment protection is forced up on an innocent borrower then it can be called as Payment protection insurance (PPI) misspelling. In such scenario, a borrower has all the rights to claim a suitable compensation for cheating on him. A sales person has a tendency of pushing an insurance policy to a borrower just to win his incentives. He might mislead a consumer by making him believe that it is mandatory to have a payment protection policy if you have to get your loan approved.

Any one applying for credit card, mortgage, to a personal loan there is a piece of sound advice for you. Do not get misled by any insurance sales agent and sign up any loan protection policy. Understand that loan protection is not always necessary, it is only a security offered to a borrower in case he is unable to pay due to redundancy. A consumer is free to opt in or opt out of it. It is fine to inform the consumer about the loan protection scheme but not to force him. If this has happened with you, do you know what you can do? You are entitled to a rightful compensation if you are made to believe that such a policy is compulsory. You should act immediately and claim back your money in eight weeks. If you think there was mis-selling you may have a valid case if you were self-employed or unemployed when you bought cover. You are also eligible to a claim if you were unaware that you were made to sign for a policy along with your loan. He might have asked you to sign on all the papers which is necessary for a loan and you have signed an insurance policy unknowingly. You can win a compensation you are made to believe that your loan will be approved only on condition that you sign for a protection policy.

PPI has its own issues or problems that need to be understood before signing up for one. Be aware that such policies incur a high cost of up to 20% of your loan value. It will be expensive to make your loan payments along with the insurance premium paid every month. If you have got into such scandals and have been cheated do not hesitate to seek for help. Misspelling of a policy is more frequent than you may think and it is worth investigating to ensure your Insurance covers you suitably.