Financial Advice Blog

It almost certain that you will have read about payment protection insurance – or PPI as it is commonly known – but are you sure what it is? Furthermore, is it possible that you have a PPI policy yet are unaware? This is known to happen, and through no fault of the borrower.

The best way to explain PPI it is vital to know what its intention is, and the easiest explanation is to point out that PPI is an insurance package taken on to help you meet payments on a credit deal in the event that that you have to miss work and, in addition, cannot earn.

A few years ago a number of PPI claims from borrowers with PPI policies were received by the people who oversee the industry, claiming that there were examplesof the mis-selling of PPI by a number of providers, some of them high street brands.

As a result of an investigation into underhand actions within the market sector many heavy fines were given to some of the perpertrators, and the discovery of mis-selling of PPI has led to many more people making a claim as a result.

A frequent scam in the selling of PPI was for the finance house to tell the customer that they needed to take out a package deal in which payment protection insurance was sold alongside the credit agreement. It is not true that the borrower had to do this, and the practice is no longer permitted.

You may be in line to pursue a PPI claim if you find that you have not been sold PPI in the acceptable way. Indeed, it was proced that a lot of people were unaware they were paying for payment protection insurance, and in a few instances the policy supplied was not applicable to the borrower.

There is no doubt that the worldwide recession has led toa rise in the number of people looking to PPI policies to ensure they pay their loan fees as jobs are disappearing all the time, and we hope that the policy turn to in such unfortunate circumstances is applicable to your circumstances.

Pursuing a mis sold PPI claim is something that nobody should need to consider, but before the recent revamp of the rules there were several ruses that led to policies being worthless. These tricks have now been written out of existence, and the new laws are there to protect the borrower more stringently than ever before.

Filed under: Financial Advice