The scandal that is costing us £6bn!
- 5TH MAY 2007
The scandal surrounding the existence and sale of payment protection insurance (PPI) alongside loans and credit cards has hit an all time low as far as the poor deal that consumers are getting is concerned. Although protecting an individual’s debts may sound appealing, the process of doing so actually costs policyholders over £6 billion a year!
Payment protection insurance can give an individual peace of mind. After all, more and more individuals are getting into heavier debts and would inevitably struggle to pay them off should they lose their job or become too ill to work.
Payment protection insurance is supposed to make the necessary repayments for the consumer but in some cases, actually fails to do so. Of the £6 billion spent on payment protection insurance every year, only £1 billion is returned to the consumer.
The policies are poorly and ambiguously designed to provide get out clauses for individual companies so that most of them are notoriously hard to claim on, and a high percentage of the 28 million policies that are active at the moment are not even valid for the person holding them because they would not qualify to claim.
These questionable sales tactics and extortionate rates detract from the fact that there are some good providers out there that are not affiliated with the high street banks and lenders guilty of this “scam”.
Standalone policies can in fact offer the benefits that those linked with credit agreements do not. Independent payment protection provider British Insurance is just one of them. They truly will offer you value for money as well as peace of mind.
