Loan payment protection still suffering problems
- 13TH DECEMBER 2007
Loan payment protection and the related policies are still suffering from problems when it comes to the selling techniques used by those with little experience in selling the cover. The majority of policies that have been mis-sold have been sold by high street lenders alongside loans and credit cards and this was highlighted in 2005 when the Financial Services Authority (FSA) began their investigation.
Several high street names were handed fines during the ongoing investigation and then the Competition Commission began an in-depth review of the sector which is still ongoing. Despite guidelines being set down for changes to the way the products are sold many firms are still falling short and in 2007 the FSA reported that over 4,000 cases were investigated which is double the cases from the previous year.
When taken out correctly with the exclusions in mind loan payment protection can give you a replacement income with which to pay your loan repayments if you should come out of work down to an accident, sickness or through unexpected redundancy. British Insurance is one of the most ethical specialists in payment protection and offer premiums which are 80% less than those of the high street. Along with providing quick and easy cheap quotes they also give access to the exclusions so that you are able to determine if the product is suitable.
Loan payment protection from British Insurance starts to provide you with an income once you have been out of work for 30 days or more and then continues providing you with a tax free income for up to 12 months. Policies do vary and some providers will not pay out until you have been out of work for anything up to 90 days and could continue paying out for up to 24 months. You do have to understand that if you are only working part time, are retired, self-employed or are suffering an ongoing illness at the time of applying for the cover then a policy probably is not suited to your circumstances.
