Payment protection insurance cover still causing much confusion
- 15TH NOVEMBER 2007
Although insurance products have always been confusing none is more confusing than payment protection insurance (PPI) cover. Since 2005 when an investigation began into the sector, problems have continually surfaced with reports of the cover being grossly over priced, little information being given regarding the exclusions and the cover being added on to loans and credit cards at the time of taking out the loan or card without the consumer's knowledge.
Three years later problems are still occurring and the Financial Services Authority are investigation over 4,000 reports of mis-selling in 2007 despite recommendations given to providers to make the product more transparent. While some changes for the better have already been seen there are still many failures when it comes to selling single premium payment protection insurance cover which is sold with the secured loan.
The latest review of the payment protection insurance cover sector by the Financial Services Authority (FSA) revealed that very little progress has been made in three out of the five key areas which the Financial Services Authority looked into.
However in fairness, some firms are now making sure that the consumer understands that the cover does not have to be taken out alongside the loan and they are offering refunds on the single premium policy. Sadly, many more are still not putting the consumer first ahead of the high profits that the cover can bring in.
Payment protection insurance cover can give you peace of mind that if you were out of work after suffering from an accident, sickness or if you should become unemployed you would still have money with which to pay your loan repayments. Cover taken out with specialist provider British Insurance can start to payout from the 31st day of being out of work and would then continue giving a tax free payout for up to 12 months, other providers could ask that you are out of work for anything up to 90 days and might continue for up to 24 months.
British Insurance can save you up to 80% when compared to the high street lender and always puts the consumer first by giving them the vital information you need to ensure that payment protection insurance cover would be suitable for your circumstances before you buy the cover.
