Don’t get ripped off on your payment protection insurance
- 25TH MAY 2007
Payment protection insurance (PPI) has long been a part of the financial industry that has offered consumers peace of mind on paper and made a significant profit for lenders all over the country.
Banks, loan companies and car dealerships are just a few of the elements of the financial services that have made a killing from the policies because very few people can actually claim on their policies and thus their premiums all go directly into the coffers of their provider.
Payment protection insurance is designed to offer consumers financial help repaying their debts for up to twelve months (in some cases, up to 24 months’) should they ever find themselves out of working owing to illness or enforced unemployment. However, investigations have revealed that it has not been doing its job as a result of vague policy wordings and mis-selling. It has also been poor value for money as a result of extortionate premiums that offer poor value for the consumer.
The Competition Commission has recently begun an investigation into payment protection insurance in the hope that they will be able to formulate a plan to make payment protection insurance good value for consumers by introducing competition into the market.
Independent payment protection insurance provider British Insurance is one of the competitors aiming to make a difference to the market. Offering loan protection policies at around 80% less than lending companies, they are very competitive and genuinely care about the consumer rather than their profit margin. Their standalone policies can really offer value for money, which is something that few other providers can boast!
