Insurers taking their time over payment protection insurance claims
- 15TH JUNE 2007
Payment protection insurance has been called into question a lot over the last twelve months or so. Although a great idea because it offers a degree of protection for you should you ever be unable to repay debts as a result of time off work owing to prolonged sickness or unemployment, it has widely been mis-sold over the past few years and consumers are now demanding their money back in their droves.
Banks and building societies had been making a lot of money from selling policies to those who would not benefit from payment protection insurance at an arguably extortionate price.
Although a claims centre has been set up by the Financial Ombudsman, that is not to say that individuals are receiving quick settlements from the high street providers that often coerced them into taking out payment protection insurance in the first place.
In fact, most high street lenders and banks offering payment protection insurance have been dragging their feet in responding to the claims. Their delay tactics have included lost paperwork and failing to allow the Ombudsman to see the necessary information. In reality, many claims are not heard until months after they are initially put in.
However, there are some ethical companies out there, like independent payment protection specialists British Insurance, who will not sell a policy to an individual that would not benefit from it. Good guys still do exist!
