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Increase in PPI complaints results in further investigation

October 10, 2008 by admin  
Filed under News, News-Insurance

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According to a recent report a huge rise in the level of complaints being received in relation to PPI, or payment protection insurance, has resulted in calls for further investigation into the sale of this type of insurance cover. This cover is commonly sold alongside credit such as loans and credit cards, and the purpose of the cover is to meet repayments on the debt for a set period of time if the policyholder cannot work due to sickness, injury, or redundancy.

According to officials from the Financial Ombudsman Service the level of complaints being received in relation to PPI has rocketed to around five hundred per week, and compared to two years ago the number of complaints is said to have gone up tenfold. Officials from the FOS have said that the financial industry is not tackling problems relating to PPI properly, and has called for the financial regulator, the Financial Services Authority, to further investigate this matter.

One industry group recently claimed that around 1.3 million credit card users had taken out PPI with their cards because they were under the impression that it was compulsory, which it is not. Millions of other people are thought to have been mis-sold this cover over the past few years, with some being sold PPI even though they would never be able to make a claim on it because they were not eligible, and others having PPI added to the finance without even being told or asked.

The FSA has already been cracking down on PPI sales recently, and a number of lenders and providers have been fined in relation to the mis-selling of this cover. Some industry officials have even gone as far as to describe PPI as nothing more than a protection racket.

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Comments

One Response to “Increase in PPI complaints results in further investigation”
  1. David Cullen says:
    January 12, 2009 at 11:51 pm

    I wrote to my lender (loan now up) having found out that I didnt need to have PPI. I was told when taking out the loan i had to take it. I wrote to them asking for it back and obviously was told that I could not have it back. They said it was the responsibility of a broker….. what do I do next? David

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