A typical case involves the lender receiving a call from Joe Public requesting £15,000 loan over 7 years to pay for new kitchen and bathroom, and on an unsecured basis. The lender approves the loan and ask the borrower does he or she want payment protection. (PPI)

Joe Public asks; "What's that ?"

Lender explains that for , say £60 per month, the repayments of £325 per month on the loan are protected if he can't work through sickness or accident.

Joe Public agrees to take out the PPI, BUT DOES NOT REALISE THAT HE HAS AGREED TO AN ADDITIONAL LOAN OF, SAY, £3250, AS A SINGLE PREMIUM FOR THE PPI COVER.

This is wrong and bad and illegal practice for a variety of reasons, viz;

1. The total cost of the PPI loan will be £5,040 over the 84 months of the loan, whereas, cover could have been obtained on a monthly plan for £12 per month, or, £1,008 OVER THE TERM .

2. Moreover, the monthly plan could be stopped without penalty at any time if , by change of job, Joe gets employment with benefits by way of full wages during sickness or accident!

3. Many lenders make the PPI compulsory , or give the impression that you have a better chance of getting the loan if PPI is taken.

4. Sometimes, the cover ceases after only 5 years, but the loan is over 7 or longer.

We will recover the whole PPI loan plus interest and you get the money intact, without deduction.

Why not pick up the 'phone and give us a try whilst relaxing on your coffee break? Telephone 0161 877 4777