Sound Advice on PPI Claims
Payment protection insurance – PPI for short – is a type of insurance used to protect loans in the event that the person repaying the loan loses their job or becomes unable to work. While it may sound like a reasonable enough financial product, the truth is that it has been mis-sold to millions of customers. With many people now claiming billions of pounds back from the lenders, PPI has become a headache for both consumers and the credit industry.
So why was PPI mis-sold so much? Because it provided the banks with a ridiculous profit. And this is why advisors tried making everybody purchase it. But because of the limitations in the policy and its high price, they didn’t give customers the information they needed to make a proper decision about whether they wanted the insurance or not. Instead they would make the product sound better than it was, or essential even in some cases.
But the important thing now is that hundreds of thousands of people have already made successful PPI claims and that hundreds of thousands more are still entitled to claim. Due to the huge needs of people who want to make a claim but don’t know how to, PPI claims agencies have sprung up. The large number of agencies keeps rates low and professionalism high, although the customers themselves can of course make claims.
Despite the fact that PPI was mis-sold to millions of customers it wasn’t mis-sold to everyone. Does this mean that it is a useful product for some people’s circumstances? Perhaps, but it is much more likely that there is a financial product out there that is more suitable for you. Talking to an independent financial advisor is your best bet. If the whole PPI scandal has made you extra cautious speak to several advisors, friends and family – just don’t rush into anything.
Hopefully consumers and bankers can learn the lessons of the PPI scandal. For the bankers, they should learn that they cannot get away with ripping off its customers – that short term gains will be outstripped by repayments and fines. As for customers, they must remember to be more careful when it comes to money – it has worked out alright this time around, but in future we may not be so lucky.
Find out more about the PPI Claims process and whether you could be eligible.
