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Over the course of the past few months we have reported on a regular basis on the ongoing saga of Payment Protection Insurance (PPI) and the problems it has caused for both consumers and providers.

Over recent years, PPI policies have raised a larger number of complaints from customers, who claim that they have been mis sold the product, than any other area of financial services products, even endowment policies and pension plans!

And if further evidence was needed to support the argument that these policies have been mis sold alongside unsecured loans and homeowner loans in the past, the Financial Ombudsman Service (FOS) has said that they have upheld 90 per cent of the complaints made to them regarding PPI policies, particularly with unsecured loans.

Many individuals who feel that they have not been given the best advice with regard to PPI, often do not do anything about it, as they are unsure of how to go about making a complaint. But now a new service has been introduced by Which? to help people make a claim against their provider. The system is an online service which asks the customer certain questions about their policy and how it was sold and then formats an appropriate letter to send to the PPI provider or loan company.

PPI has been a can of worms for many providers for some time now, as it is an expensive product which offers limited cover to protect people’s various loans and in many cases, borrowers do not realise that they are not actually covered until they come to make a claim on the policy, by which time it is too late. Which? have said, along with many other advisers, that income protection, or permanent health insurance is a more appropriate method of protecting loan repayments.

Either way, the new system is likely to encourage even more people to complain about their PPI policy, whether it is justified or not.