http://www.theclaimsconnection.co.uk/ppi-claims/lloyds-ppi-complaints - Payment protection insurance, or 'PPI', is not a bad product in principle. It's designed to cover loan, finance or credit card payments in case you are made redundant or are too sick to work. PPI could be acquired relatively cheaply when purchased as a stand-alone product. However, Lloyds banks and other large financial organisations saw an opportunity to link PPI to loans and credit cards. Heavy selling techniques were adopted and premiums soared, along with profits. Since the mid 1990s, mis-selling of PPI has been rife across the financial services sector. Most major lending institutions were guilty of 'jumping on the PPI bandwagon'. The most common mis-selling practices included failing to inform customers that the PPI was optional or leading them to believe that it was compulsory. Lloyds bank and many other banks and lenders generally failed to explain the policy in a way that was understandable to the particular customer. They also frequently failed to investigate whether the policy was suitable for the customer's needs. Consequently, PPI was sold to customers for whom it was unsuitable. For example, self-employed or retired people, or those with a medical condition, who would be ineligible to claim. The FSA laid down guidelines for lenders to compensate customers who were mis-sold PPI. The Lloyds and other banks withdrew their initial legal challenge to these measures, paving the way for thousands of PPI re-claims. If you bank with Lloyds or a lender that was guilty of any mis-selling practices, you may be entitled to a full refund.