Payment protection insurance still being mis-sold
- 19TH NOVEMBER 2007
Payment protection insurance is still being mis-sold with the Financial Services Authority (FSA) reporting that they are investigating over 4,000 cases in 2007 despite guidelines previously set out. Three out of five of the guidelines set out by them are still not seeing improvements although the positive news is that some firms are now telling the consumer that the cover is not compulsory.
Problems began for the sector after the Office of Fair Trading received a super complaint from the Citizens Advice and it was found that mis-selling was wide spread. Several major names on the high street received fines and then the sector was referred to the Competition Commission. Some of the many problems surrounding the sector have been the high cost of the cover, a lack of information regarding the exclusions in a policy and the consumer being unaware that they had the option of shopping around and buying the cover independently.
By taking out payment protection insurance with a standalone provider such as the ethical British Insurance you can save up to 80% on the premiums whilst at the same time getting access to all the vital information and key facts of a policy, enabling you to make an informed decision over the suitability. There are exclusions which could mean a policy would not be in your best interests and if this is the case you could not hope to claim against it.
These exclusions which are common include suffering an ongoing illness, being in part time work, retired or self-employed.
Only by knowing that the exclusions exist in payment protection insurance can you then decide if taking out the cover would be right for you. If it is then cover from British Insurance would provide you with a tax free income on a policy from the 31st day of being out of work due to an accident, sickness or through unemployment and would continue to give you a tax free income for up to 12 months. Other providers could ask that you are out of work for anything up to 90 days so it is essential you check the terms and conditions of any policy before buying.
