Poor protection advice slammed
- 12TH JUNE 2007
Financial matters are not easy for the majority of us to understand, and payment protection insurance (PPI) is just one of them. Currently the sector is under investigation by the Competition Commission and clearly there are many changes that need to be made in the sector to make the product easier for the consumer to understand, who it is after all supposed to be protecting.
The payment protection insurance sector has been slammed recently and rightly so when it came to light that the in many cases the product was doing anything but protect those who it was designed for. Tales of mis-sold policies and extortionately priced unsuitable policies have been making the headlines of the financial pages on a weekly basis.
However, sold correctly, payment protection insurance is an invaluable product. Payment protection insurance is taken out by those who have some form of credit such as a mortgage; loan or credit card. It protects their monthly outlay should they find themselves out of work because of sickness, accident or unforeseen redundancy.
As discussed previously, a huge amount of policies have been discovered to have mis-sold to those who cannot possibly hope to make a successful claim if needed and the Financial Ombudsman Service is starting to accept cases for compensation claims.
And when it comes to purchasing the protection, the majority of those who want it don’t even realise they can purchase the product independently as opposed to alongside their loan or credit card, which normally works out far cheaper.
Some policyholders have even been nothing short of “conned” into taking it out from those who supply the credit card or loan, which has lead to them paying a ridiculous amount in premiums for the cover.
If you want purchase protection then do so safely and cheaply with a standalone provider such as the ethical British Insurance. British Insurance can offer consumers huge savings on their payment protection insurance and always put the needs of the consumer first.
