Miselling of PPI
In many cases individuals are often concerned about not being able to pay their mortgage payments, credit cards and other miscellaneous loan commitments. This can be the result of unexpected redundancy, accident and sickness. One of the many solutions to this is Payment Protection Insurance which has gotten a bad name from the miselling of PPI.
Payment Protection Insurance
Payment Protection Insurance, while being a good cover for the unexpected loss of financial stability, can be very expensive with insurance premiums which can amount to an excess of one half of the entire loan amount. This is a very hefty sum to be paying back on a monthly basis for someone who might have taken a loan in the first place to compensate for the fact that finances were low. This insurance coverage comes with conditions or exclusions and may very well still not offer any coverage should the need arise for the insurance to cover the loan. The next big problem is the miselling of PPI.
This seems to be a frequent occurence with many claims being made on the basis of not knowing that Payment Protection Insurance had been included in the loan or other reasons such as inadequate explanations or the sale of Payment Protection Insurance to individuals who did not even require this type of insurance. Payment Protection Insurance is specifically for the employed and should not be sold to retired persons, unemployed persons or students. This defeats the purpose of the insurance. However individuals who have not had the unfortunate experience of the miselling of PPI have actually benefitted from this type of cover.
Organisations Reviewing Payment Protection Issues
The Financial Services Authority and The Office of Fair Trading have conducted investigations, exposed and fined a number of companies and their staffs for the miselling of PPI. In 2009 it was ruled by the Competition Commission that PPI should no longer be sold at the same time a loan is taken out by an individual. The retailers and lending institutions can approach successful borrowers a week later with their sales pitch for Payment Protection Insurance. It is always worth remembering that PPI is not mandatory. The borrower has the choice to accept or refuse this coverage. This type of insurance can also be purchased from another insurance provider and not necessarily the one associated with the lending institution. Borrowers would do well to shop around for the best coverage as it relates to cost and personal circumstances.
There have been many public discussions on the Miselling of PPI. An effort has been made to enlighten the public on what this insurance is all about and the possibility of being affected by the miselling of PPI. This also gives rise to the PPI claim for individuals who have had this unfortunate experience. Belmont Thornton Limited can be contacted in relation to any Payment Protection Insurance inquiries and assistance can be rendered in claiming back on any insurance payments which may be deemed as unnecessary at the time the loan was taken by the individual. Settlement can be obtained in approximately eight weeks in some cases.
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