Payment protection still suffering problems in 2007
- 26TH DECEMBER 2007
Despite the guidelines set out when the investigation into the payment protection sector began in 2005 payment protection is still suffering from a great deal of problems when it comes to the selling practices used. Over 4,000 cases are being investigated in 2007 - double the previous year’s - which shows that firms are not taking heed of the changes needed to be made and which were defined by the Financial Services Authority.
Consumers are still being misled when taking out payment protection with little or no information being given about the exclusions in a payment protection policy. Typical exclusions include suffering a pre-existing medical condition, being of retirement age, if you are only in part time work or self-employed. These are just the common ones so it is essential you are given the facts.
The best way to take out payment protection is with a standalone provider such as British Insurance, an ethical provider will ensure that you have access to the vital information needed to determine the suitability and will offer the cheapest premiums for the cover. A policy from British Insurance can save you up to 80% in comparison with high street banks and lenders. A lack of information is what has led to the majority of problems with the cover, consumers are not told about the exclusions when taking out cover alongside a loan.
Payment protection from British Insurance will begin to payout from day 31 of being out of work and would payout for up to 12 months but other providers offer different terms and can ask that you are out of work for up to 90 days but can payout for up to 24 months. The small print and terms and conditions of the policy must be checked before buying the cover if you want to have peace of mind that a policy would give you an income if you were to be out of work through accident, illness or unemployment.
