Payment Protection Insurance Claims

Payment Protection Insurance, or PPI, has been described as a ‘financial rip-off’ by certain elements of the financial press. The Citizens Advice Bureau found that in many cases it was more about providing an additional source of profit for the financial industry than about protecting consumers. It is usually very expensive and often does not afford the protection that consumers believe they are buying.

At a time when personal debt levels are rising, amid concerns about the more general economic climate, it is disturbing that a huge number of vulnerable people have been duped into paying out their good money for insurance that offers them little benefit. Often, PPI is just another debt – and a costly one.

Insurance is generally a sensible approach to managing risk. After all, we live in uncertain times and a change of fortunes can have a devastating effect on our personal finances. On the face of it then, Payment Protection Insurance, sounds like a pretty good idea. Borrowers buy assurance that their credit repayments will be covered if they become unable to work because of illness, accident or unemployment. Unfortunately, this peace of mind can be shattered when the unfortunate victim comes to make a claim only to be told he or she does not qualify. Obviously, not all insurance is over-priced or ineffective, and not all sales people are unscrupulous. Unfortunately, however, the number of high street providers who have been criticised and fined for using unethical sales tactics has been extremely high.

This is not a new problem, but it is only recently that the Financial Services industry watchdog has started to help ensure that consumers get fair compensation for unsuitable products.

Almost anyone who has taken out a personal loan or mortgage in the past 6 years will have been offered PPI. Check your loan documents to see. If you have PPI, are you sure it would be valid if you had to make a claim? Do you know how much it has cost you in premiums? Do you know if you could have got a better deal? Would you be upset if you knew it was both over-priced and useless? Of course you would. This is why so many consumers are now seeking redress and, in most cases, getting their money back plus compensation. These refunds can be used to take out appropriate, cost-effective, insurance that is better suited to their needs and means.

If you believe you may have been mis-sold a PPI policy, you should complain to the insurance company. You may need the help of an experienced adviser to make the complaint. Consumer Claims is a specialist financial claims firm that helps people claim compensation for being mis-sold insurance and other financial products. Consumer Claims only charges you if your claim is successful, so you have nothing to lose by making an enquiry, and maybe a lot to gain.

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