Payment protection insurance is called into question
- 19TH JUNE 2007
Every high street bank and lender offers payment protection insurance (PPI) of some sort. It is in fact offered by every company that offers some form of credit because it is sold in conjunction with credit cards or loans. The consumer is encouraged to purchase it because it actually serves to protect their repayment should they ever fall ill or be made redundant and therefore have to take some time off work through no fault of their own.
Whilst this description may make it sound like a good product, whether it is or not is debatable and that has led to widespread criticism of the insurance over the course of the last year. Various companies have been found at fault as far as their selling practices are concerned, as they often pressure borrowers into having it, whether it meets their needs and eligibility or not.
However, a recent Financial Services Authority probe into payment protection insurance has revealed that one of the major worries about the product is that consumers actually know very little about it before signing on the dotted line.
Independent payment protection specialist British Insurance provides various payment protection insurance policies that are in no way affiliated with banks or lenders, and the company actually makes a concerted effort to educate their customers and provide them with the most suitable policy.
They go to show that it is possible to protect the consumer through a payment protection insurance policy and that there is also no need to mis-sell. It is a shame that other providers have not actually come to terms with this fact yet!
