Payment Protection Insurance (PPI) – Your say…
The Financial Services Authority (FSA) are actively ‘cracking down’ on firms which sell Payment Protection Insurance (PPI). PPI’s are designed to protect the policy holder should they lose their income, whether that be through ill health or unemployment. There are often many ‘hidden nasties’ within PPI terms and conditions which can make it very difficult to actually claim monies when you require them. In addition PPI’s were historically mis-sold by companies, consumers in some instances were told that the insurance was compulsory, which is in actual fact untrue.
The BBC recently asked for comments about PPI from the general public, some of which are detailed below:
I went for a car loan from a well known high street lender. They wanted to charge me £50 a month insurance for a £250 a month loan. I felt highly pressurised into signing up – as if I did not purchase this insurance right there and then, I could not get this insurance later. When I got home I did a bit of research and found a company that would insure me for exactly the same thing for £5.25 a month! The bottom line is go to a bank for money, go to an insurance agent for insurance – and when pressurised into doing something “there and then” – WALK AWAY as they are hiding something. A. McLaughlin
I have always resisted the pushy attempts to persuade me to take out PPI. It is clear that staff are under pressure to sell this product by the statements they make to encourage its take-up. For instance, when I said that I did not wish to buy PPI I was asked if I had any adult children. When I replied that I did I was told that I should think of them because if I should die with a loan debt outstanding my children would be pursued to repay it. This is, of course nonsense. Any debt would be a charge to any estate I might leave but as my children were not parties to the loan agreement they could not be liable. However, the staff member talking to me insisted that if my child had a home then they could run the risk of losing this. D. Williamson
Although the borrower pays the premium, PPI protects the lender, not the borrower. Dave K
If you have been mis-sold Payment Protection Insurnace (PPI) Cloud 9 Claims will be able to help you.
