Financial Advice Blog

You will undoubtedlyhave learned about payment protection insurance – or PPI as it is popularly known – but do you know what it is? Also, is it the case that you are paying into a PPI policy yet are unaware? This is known to happen, and through no fault of the individual concerned.

In order to explain PPI it is essential to know what it is, and the simple explanation is to point out that PPI is an insurance package designed to help you meet payments on a credit deal in the event that that you are unable to work and, therefore, cannot earn.

Recently a number of PPI claims from borrowers with PPI policies were noted by the people who regulate the industry, and these claimed that there may be examplesof the mis-selling of PPI by many providers, some of them high street brands.

As a result of an investigation into less than honest actions within the market sector some heavy fines were extended to the culprits, and the uncovering of mis-selling of insurance has led to an increase in the number of people making a claim as a result.

One popular ruse used in the selling of PPI was for the lender to infer to the customer that they had to take out a package deal whereby payment protection insurance was sold alongside the credit agreement. It has never been true that the customer was obliged to do this, and it is no longer allowed to happen.

It could be that be entitled to apply for a PPI claim if you think that you were not sold PPI in the correct manner. Furthermore, it was discovered that some people were not told they were paying for payment protection insurance, and in some examples the policy in hand would have been useless to the borrower.

There is no doubt that the current economic crisis has causeda rise in the instances of people turning to PPI policies to keep up with their mortgage payments as jobs are falling all over the world, and we hope that the policy you need to rely on in your time of need is applicable to your circumstances.

Pursuing a mis sold PPI claim is something that nobody should need to consider, but before the revision of the laws there existed several ruses that led to policies being of no use. Such ruses have now been written out of existence, and the current laws are there to protect the consumer more strictly than has been the case.

Filed under: Financial Advice