A loan payment protection insurance policy can be your safety net
- 5TH OCTOBER 2007
A loan payment protection insurance can still be a safety net despite the many problems that have surrounded it, but it has to be bought correctly with your circumstances in mind. The investigation into the sector began in 2005 when the Office of Fair Trading received a super complaint from the Citizens Advice after it was found that wide spread mis-selling of policies was rife.
The Financial Services Authority began investigating the sector and handed out fines to several well known names on the high street for failing to have the consumer’s best interest at heart before referring the sector to the Competition Commission. The sector is currently under review by the Competition Commission who is conducting an in-depth inquiry which is expected to reach conclusion by February 2009.
While changes for the better have been made clearly there is much more to be done if faith is to be restored in the income and loan payment protection insurance sector. The latest round of investigations revealed that firms are still not giving enough information to the consumer regarding the product so that they can make an informed decision about the suitability of the product. Now the Financial Services Authority is not only fining firms but are handing out fines to Chief Executives themselves, something which Managing Director of standalone specialists British Insurance, Simon Burgess, agrees with.
British Insurance is one of the most ethical specialists in the payment protection sector and only deals in payment protection products. They can help you to make savings of up to 80% on a policy which will begin to provide with an income if you should come out of work due to suffering from an accident, sickness or through unemployment of no fault of your own. A policy from them will begin to payout from the 31st day of being out of work, though some providers extend this for up to 90 days and will then continue to give you a tax free income for up 12 months, with some providers for up to 24 months. The money will allow you to continue repaying your loan repayments and so not get into debt.
A loan payment protection insurance policy can be a safety net and it is essential to remember that it is the poor selling techniques which are at fault and not the product itself which is to blame for the many problems in the sector.
