There has been a lot of attention on missold loan insurance recently, with many consumers claiming back vast sums as a result. This has come about as a result of loan companies and banks including PPI without the express consent of the borrower, which effectively invalidates it. If you are looking to find out if you are eligible or for more information on what to do, read this quick guide.

First of all, PPI cover is missold if it was included within your loan without your knowledge. So for example you may have applied for a loan online and secured your interest rate before confirming over the phone. This may then be added in without being mentioned.

It's easily done. Unless you're fully aware of how much your monthly repayments should be, you probably won't notice the extra fee on top of it when quoted over the phone. You might not even find out until much later that you have the PPI cover.

Alternatively, you may have been told that the PPI cover was essential for your loan by the provider. Again, this is incorrect. If you were instructed to purchase it in accordance with their rules then the policy was missold and you could be in line for full compensation.

If you've found yourself in this situation with any loan in the last six years you're in a good position to reclaim all fees.

So how do you begin a claim?

The first thing you need to do, if you believe that you have a decent case, is to contact the lender in question. You can do this by phone, although if you do it in writing then you might be able to collect evidence of your conversations should you need it in future.

Unfortunately many banks and loan providers will plead ignorance and suggest that you signed the contract, therefore you're liable. If it was a written contract, then they may be entirely correct, however it is worth pursuing.

If they aren't playing ball, then your next step is to say that you will approach the Financial Ombudsman (the official body for any financial complaints in the UK). This might spur action, but more likely than not will leave them unmoved.

So now you have to actually plead your case to the Financial Ombudsman. You'll need to contact them to get a form and then provide them with all the details of your case. This part of the process can be slow and a little time consuming, but so long as you have a solid case, it should be successful.

The statistics are in your favour by the way. Over two thirds of complainants manage to get compensation from their bank or loan provider for being missold PPI insurance. Unfortunately not everybody has the time or the persistence to follow a case through to a successful conclusion.

If you don't feel like you can do it on your own but would still like compensation, there are a number of reputable firms who offer PPI reclaiming services. They will do all the leg work on your behalf and take the case out of your hands.

You often won't have to pay a penny up front either. They will only take a small share of your overall payout, as agreed at the outset of the case. Your work will be minimal but the rewards could be huge.