Some recent stats from the Office of Fair Trading indicate that nearly one out of five PPI claims becomes successful. During the last year around 25,000 PPI related complaints were received, which showed that insurance had become the biggest source of people’s grievance related to finance. Some big names were fined for policies miss selling. It cautions consumers that in the current economic scene taking out this kind of insurance is not a right thing to do. Financial Services Authority has also identified some unsound PPI sales practices especially in these days of economic slowdown.
A report from the consumer supervisory body shows that thousands of Britishers buy PPI as they think that their financial products related applications would become more acceptable if they go for this insurance. Results of the latest consumer watchdog study show that nearly 9.8m Britishers have PPI on, related to their credit card debt.
There are many who don’t even know what PPI is, but as there are nearly 20m polices existing in the UK and it is possible that many might have this policy without even realising about it. Actually, Payment protection insurance or PPI is a kind of usual insurance product, which was sold as loans, mortgages, credit card, store cards, and many others.
Purchase agreements for hiring that also include agreements for car financing. This policy has been designed to meet repayment if someone fails to make them at time, because of some specific circumstances. Usually if someone can’t meet the repayment because of some illness or accident and can’t work for a specific period, a PPI policy comes to your rescue at that moment and makes the payments for some specified period.
Apparently, it feels quite fantastic policy, which can be quite useful, but it has been found that those PPI polices which are purchased from some lender directly, often quite are poor in their value. It has also been noticed that most of the times these PPI polices are sold to those people who cannot raise an applicable claim. These polices have quite strict terms and conditions, and as mentioned earlier only one out of five claim is successful.
There are separate terms and conditions for each policy and recently it has been found that these polices are not paid to retired, self-employed and those people who do not work because of their prior medical condition.
Recently there were some reports in which it was revealed that some lenders were pushing consumer in these sort of polices. There were some other cases, in which, PPIs were included without getting permission from the customer.
However, now FSA has decided to increase its action against all those companies who have been found with miss-sold PPI. Similarly, it has been recommended by the Competition Commission that in any sort of circumstances, PPI wouldn’t be sold as some other credit product at the same time. These steps will definitely help to improve the situation.
Simon P Jennings is a financial expert. Take opinions of professionals and advise on PPI Claim now at http://www.claimsadvicecentre.com
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