How to reclaim your premiums
- 24TH MAY 2007
The Financial Services Authority has been investigating the mis-selling of payment protection insurance (PPI) and it seems some head way is being made in the sector during this third phase. New rules will be introduced which means that the banks will find it harder to rip-off consumers when they buy this valuable protection.
Payment protection insurance is a private insurance product which can be taken out in order to cover the monthly repayments on a credit card, loan or mortgage. It is meant to safe guard the consumer should they become unable to work due to long term illness, accident or involuntary redundancy, by providing a tax-free lump sum payment. However, in a large amount of cases it has been nothing but poor value; difficult to make a claim on and the premiums are grossly inflated.
However, says Simon Burgess from independent payment protection specialists British Insurance says that changes are afoot. “Nil refund policies - where previously customers with a single premium policy were not entitled to a refund of premiums if they cancelled their policy due to no longer having the borrowing - are now a thing of the thing of the past, though there is still room for the provider to not refund theie customer’s full entitlement.
“And more and more people are finding that they can claim compensation if they have been mis-sold a policy and the Financial Ombudsman Service has been inundated with claims. Already many policyholders have had their compensation claims successfully settled.”
Simon recommends that if you have any problems with the lender then get in touch with the Financial Ombudsman who should be able to help you.
