Finding PPI to suit your pocket and needs

Many people have heard of Payment Protection Insurance, or PPI, these days, and not necessarily for the right reasons. This is a type of insurance typically taken out with various forms of credit such as credit cards and loans, but has been hitting the headlines with alarming regularity over the past couple of years due to claims that it has been widely mis-sold by banks and financial institutions.

PPI is a type of insurance that is designed to cover repayments on credit for a specified period of time if the policyholder cannot work due to sickness, accident, or redundancy, and the cover provides many people with peace of mind. However, the controversy has arisen because in many cases in the past the cover was sold to those that could not claim on it, was added to credit agreements without the prior knowledge or consent of the borrower, and was sold to consumers by giving them the impression that they had to take it out with the lender in order to get the finance that they needed.

However, it has now been announced that the Competition Commission in the UK is placing a ban on the sale of PPI at the same time as financial products by banks, and this means that consumers will no longer have to face the uncomfortable feeling of trying to squirm out of taking out the cover whilst the lender is trying to push it onto them relentlessly.

For those that do want to take out the cover for their own peace of mind it is important to shop around, as you can get this type of cover from a number of providers and the cost can vary from one provider to another. In addition to this it is also worth working out whether this is the best type of cover for you, or whether you might be better off with an alternative, such as income protection, which would cover your income as opposed to certain debts.

In addition to hunting around for the best price on PPI – which can be a costly form of cover – by comparing different policies and providers consumers should also ensure that they read the policy terms and conditions carefully to ensure that they are eligible to claim and familiarise themselves with any restrictions that are in place on the policy that they are considering.

Tags: credit, ppi, finance, Competition Commission, Insurance

Nearly three million people could get PPI compensation

According to the UK’s financial regulator, the Financial Services Authority, nearly three million people could be in line for compensation over mis-sold PPI or Payment Protection Insurance. The regulator claims that 2.75 million people could be entitled to compensation totalling £2.7 billion.

Banks and financial institutions have been given until the beginning of December this year to bring in new rules with regards to dealing with complaints over PPI. The FSA has already said that over a five year period it had found a “wide and deep evidence of weaknesses in PPI sales”.

PPI is a type of insurance cover that is designed to cover repayments on loans and other forms of borrowing for a specified period of time in the event that the policyholder is unable to make repayments due to redundancy, sickness, or injury. However, investigations into the sale of this type of cover found that in many cases the insurance cover was being mis-sold.

One of the ways in which cover has been mis-sold is through selling to those that could not claim, such as the self employed. In other cases consumers were led to believe that they had to take out the cover to get the finance that they needed. In some instances consumers were not even aware that PPI, which is a costly form of cover, had been added to their finance agreement.

In a statement the FSA said: “Today is the culmination of months of hard work and now, with these measures, we look forward to consumers being treated fairly whether they are buying or complaining about PPI. Since we took over the regulation of PPI we’ve carried out 24 investigations and three thematic reviews, issued warnings, halted the selling of single premium PPI with unsecured personal loans, visited over 200 firms, and handed out some very significant fines.”

Tags: finance, payment protection insurance, insurance cover, Financial Regulator, ppi

Thousands get extension to complain about PPI

It has been reported that tens of thousands of consumers who may be looking to make a complaint about PPI, or Payment Protection Insurance, have been given an extension to the deadline to make their complaint by the UK’s financial regulator, the Financial Services Authority.

The normal deadline for PPI complaints in relation to being mis-sold the cover is six months. However, the FSA has extended the deadline for five months for those whose complaints were rejected by firms between November 28^th last year April 28^th this year. It is thought that around fifty five thousand people could benefit from the extension.

The additional five month period that has been granted by the FSA means that the tens of thousands of people whose complaints were turned down between November last year and April this year now have until towards the end of October this year to complain.

There was a delay in the FSA’s own plans whilst it decided how companies should be made to deal with PPI complaints. However, the regulator did not want consumers to suffer as a result of the delays, and this is why it has decided that it should extend the complaint deadline.

PPI has been at the centre of controversy for some time, and there have been investigations carried out showing that many people were mis-sold these policies, which were often sold to those that did not want them or were under the impression that they had to have the insurance cover in order to get the finance that they wanted.

One consumer said: “I’m glad that the FSA decided to extend the deadline, as otherwise I would have missed out on my chance to complain and possibly get a refund on cover that I believe to have been mis-sold to me.”

Tags: finance, mortgage, payment protection insurance, ppi, delay, investigations, year

PPI ban could mean higher fees and charges

It was announced recently that regulators are planning to stop the sale of the controversial single premium Payment Protection Insurance policies from lenders in 2010, and in fact in a bid to stop the sale of these policies regulators actually contacted lenders last month asking them to stop selling single premium PPI by the end of last month. Read more

Tags: credit card insurance, single ppi policy, loan insurance, ppi, payment protection insurance

Victory over bank sales of PPI

Over recent years there has been a lot of controversy over single premium payment protection insurance cover. Whilst much of the concern has been related to the way that this type of insurance cover has been mis-sold by many lenders and providers, there has also been a lot of concern relating to the cost of single premium PPI. Read more

Tags: ppi, useful type, Types of insurance, PPI product, alliance, payment protection insurance, Lloyds Banking Group

Whistleblower claims – “Employees at RBS being trained to lie”

According to an insider from the Royal Bank of Scotland employees at the bank are being trained to lie in order to stop customers from cancelling the Payment Protection Insurance on their credit cards. The whistleblower is apparently from the bank’s Customer Loyalty Team, and said that employees are trained to use a number of practices to stop customer from cancelling PPI on their credit cards. Read more

Tags: consumer, ongoing investigation, authority, call, cancel accounts, rbs, ppi, Credit card

Payment Protection Insurance For Loans

Every year many people in the UK take out a loan in some form or another, whether it is a secured loan that is secured against the home or whether it is a contract based unsecured loan. And for most of us the thought of not being able to meet repayments on the loan one day never really crosses our minds when we are actually taking out the finance. However, there are many unforeseen circumstances that could result in the borrower being unable to meet repayments on the loan, and this could lead to severe consequences, particularly in the event that the loan is a secured one. Read more

Tags: contract, credit, lender, ppi, severe consequences, Loans, missed repayments

Payment Protection Insurance Cover

Anyone that takes out finance likes to have the peace of mind that they are protected against situations that could render them unable to make repayments, and payment protection insurance cover is an effective way to do this. Read more

Tags: Loans, payment, cost, protection, Insurance, ppi, finance, credit

Competition Commission still investigating PPI

The controversy over payment protection insurance has been going on for some time now, and regulators have been investigating the problems surrounding the sale of PPI after it was found that many consumers were being mis-sold this insurance, and that in some cases the cost of PPI was higher than the interest costs on a loan.

The Competition Commission has stated that its investigation into PPI is still ongoing as no conclusions have yet been reached.

The Competition Commission has stated that the issues that are being considered are complex and therefore more time and consideration is required. The Competition Commission plans to publish its provisional findings in May of next year. The chairman of the inquiry stated that the Competition Commission had already reviewed a substantial amount of evidence, but added that there were areas that needed to be looked into further.

The chairman stated: “We are far from making up our minds. But we are focussing on the amount of competition for PPI that distributors face at the retail level.”

He added that the Competition Commission was aiming to complete the inquiry as soon as possible but had to take into consideration areas that needed to be looked at further. He said: “…we are also conscious that the issues we are deciding upon are by no means simple and it is vital that we carry out our work thoroughly, ensuring that all parties receive a fair hearing.”

A number of issues relating to PPI are being looked into by the Competition Commission. This form of cover is designed to protect against falling behind on repayments on loans, credit cards, and other forms of finance.

Alan Wright
13th November 2007

Tags: commission, Mortgages, protection, Insurance, credit, competition, Loans, cards, finance

FSA to publish new PPI guidelines

The UK’s financial regulator, the Financial Services Authority, is to publish new guidelines in relation to Payment Protection Insurance on its website next year.

Payment Protection Insurance, or PPI, has been at the centre of controversy over the past year, with many claims that this type of insurance was being forced onto borrowers, mis-sold, and in some cases added onto finance deals without the consumers even knowing about it. Banks and lenders make a lot of profit on the sale of PPI, but in many cases customers end up with expensive policies that they cannot even benefit from.

Payment Protection Insurance is designed to help those taking out finance, such as credit cards, loans, and other forms of credit. The idea behind the cover is that consumers will be covered for a specified period in the event that they are unable to work and therefore make repayments due to redundancy, illness, or accidents. However, research was carried out by various agencies, and the industry came under severe criticism for the inappropriate sale of policies amongst other things.

Many people have ended up purchasing PPI that is not suited to their needs as a result of this mis-selling, and the FSA aims to steer customers towards suitable plans based on their needs via the website. Customers will be asked a number of questions on the site, and will then be able to view a choice of suitable policies so that they do not end up purchasing inappropriate PPI.

In addition to helping consumers to find the right PPI policies for their needs, the FSA has also promised that it will be taking far more stringent action and imposing far higher fines on companies that are found to be mis-selling Payment Protection Insurance in the future.

Tom Smith
4th November 2007

Tags: payment, finance, cards, misselling, investigation, Insurance, credit, ppi, protection, fsa

Nationwide stops PPI sales

The largest building society in Britain, the Nationwide, has stopped sales of Payment Protection Insurance with its financial products, after admitting that customers were not being properly advised with regards to PPI by staff members.

Payment Protection Insurance has been at the centre of controversy for some months after it was found that customers were being pushed into purchasing this non-compulsory cover, and that the cover was often being mis-sold inappropriately so that customers ended up purchasing a costly policy that they would never be able to benefit from.

The Financial Services Authority has been running a long term investigation into the sales of Payment Protection Insurance for two years, and is in the final phase of its review and investigation. The cover is designed to assist those that cannot keep up with repayments on their financial commitments due to accidents, illness, or redundancy, and is sold with products such as credit cards, loans, and other financial products that may need protection.

However, the review revealed that in many cases sales staff were mis-selling this policies, making the customer think that they cover was compulsory, and in some cases even adding PPI without the customers’ knowledge. This has led to a real crackdown on the sales of PPI after many people ended up purchasing policies that they were either not eligible to claim benefits on or that they were not even aware that they had purchased.

A Nationwide spokesman stated that the halt in sales of PPI is a temporary one, adding: ‘We did some mystery shopping and weren’t satisfied the sales processes were as robust as they should be, so they have been halted temporarily.’

Tom Smith
27th September 2007

Tags: fsa, policy, ppi, Insurance, cover, cost, payment, benefit

Biba encourages PPI

Insurance brokers are being encouraged to include payment protection insurance (PPI) with their products.

The British Insurance Brokers’ Association (Biba) is launching a series of new incentives aimed at attracting brokers to selling PPI.

Biba is offering products with enhanced benefits, a more competitive rating structure and improved commissions.

The organisation says that driving PPI will benefit consumers as they will receive better protection on loans, income and mortgages.

The changes include the introduction of partial cover on stress, back-related and pre-existing conditions, as well as the removal of exclusions relating to Aids.

“We can all see that the distribution landscape for PPI is changing as many existing providers continue to be challenged by the regulator and media to improve their sales processes, cover and cost,” said Eric Galbraith from Biba.

“This recent attention has shaken consumer confidence in buying PPI from non-broker channels and the time is right for brokers to seize their market share. We’re providing our members with the right tools to do this.”

Customers taking out any kind of loan should consider PPI, as it offers protection against any unforeseen changes in your personal circumstances.

Biba has promised to give brokers “whatever level of support they require” and has described the new products as “a win, win scenario”.

Tags: kind, rating, Fashion, BIBA, ppi, Eric Galbraith, barclays

The Pros And Cons Of Payment Protection Insurance

Lenders are always eager to convince borrowers to protect their repayments for loans, credit cards, store cards, mortgages and other financial products. And they have a point. People in the UK are saving less and borrowing more, with a high rate of debt. Read more

Tags: policy, credit, ppi, cards, protection

Payment Protection Insurance – Worth The Extra Cost?

Protecting yourself against going into debt is a logical step for many people; but you have to make sure the insurance is actually worth the risk. Read more

Tags: time, loan insurance, professional advice, likelihood, taking, payment protection insurance, mortgage insurance, ppi