Payment Protection Insurance is responsible for a lot of problems for people who have been mis sold PPI. This insurance is typically issued to safeguard the insurance holder in case the situation develops that they cannot pay their bill. The most common situations included in PPI claims are situations were the borrower has acquired a condition, lost his or her employment, and redundancy. Although, there are actually instances when the insurance plan had not been discussed properly resulting in the insurance policy holder to have complications in making a PPI claim.

The main reason this happens is that the person selling the insurance plan would not adequately describe the inclusions and exclusions or the terms and conditions. They might fail to discuss the very important aspects of the insurance policy, to ensure the person obtaining cannot make a knowledgeable judgment. An example of this is when the policyholder is unaware that there are certain ailments that are not protected by the insurance plan, or the factors which the insurance holder decided on when buying the insurance poilicy were not specified in the contract. The result of this is, policy holder is unable to file a claim because he / she is ineligible to make PPI claims under the plan.

One of the main reasons why the policy holders are not knowledgeable with regards to the insurance policy is due to not being informed about the terms and conditions in regards to the insurance policy. Another point is that almost all of people who are declined the PPI cover weren't given an option. With the desire of banking institutions to generate more profit, they did not tell the customers that they have the right to not agree to the insurance policy after borrowing money from them. Also, they were not transparent enough in providing the customer information on how they may start PPI claims, which is extremely important in helping the borrower figure out if they need the policy or otherwise.