£10 billion in compensation claims predicted
- 11TH JUNE 2007
Payment protection insurance (PPI) has been in the spotlight recently due to the investigation into mis-selling of policies and the high prices that some firms charge for the policies.
Some of the titles it has earned are "scam" and "the big bank rip-off". However, there are around 28 million policies in force which means someone is making extremely large profits on the product.
Payment protection insurance is without a doubt a great thing to have in your corner when the product is bought properly. It can be essential for those who take on large loans or mortgages, to safeguard the monthly repayments should they find themselves out of work due to long term sickness, involuntary unemployment or accident.
However the high street bank in particular have been not only charging huge amounts for their premiums but have also sold policies which the consumer cannot possibly hope to claim on.
The Competition Commission – who are currently investigating the sector - has recently outlined the fact that mis-selling of policies has gone on for some time and this has led to people successfully claiming compensation, with many more claims thought to be following.
British Insurance Managing Director, Simon Burgess says that if all the consumers who were entitled to claim did so successfully, then it could run to £10 billion in compensation. He recommends that anyone who thinks they might have been mis-sold a policy go to the Financial Ombudsman Service, set up to negotiate between financial firms and consumers and make a claim.
Purchasing your policy from a standalone payment protection provider is without a doubt the cheapest and most reliable way to purchase your policy and British Insurance are one such company who is backed by years of experience in the sector.
