Loan protection is still necessary
May 31, 2011
Over recent years there has been a lot of new coverage about the mis-selling of payment protection insurance, or PPI, on loans, credit cards, and other forms of finance. This has been in the headlines more than ever over recent weeks, after a court ruling that resulted in banks having to compensate and reimburse consumers who claimed that they had been mis-sold the cover when they took out the finance.
All of the negative publicity about PPI and the way in which it has been mis-sold over the years by banks and financial institutions has put this cover in a very bad light, and many people who take out finance automatically think that PPI must be a bad think. However, officials have warned that the bad press that PPI has received does not mean that consumers who are taking out finance should avoid the cover but that they should shop around for a good deal that suits their needs.
PPI is designed to protect the monthly repayments on the finance that you are taking out in the event of accident, sickness, or redundancy. It can be very useful if and when it needs to be used. However, problems arose because banks and financial institutions had been found to be selling it to people that were not eligible to claim, making people think that they had to take it to get the finance that they needed, or adding it on without their knowledge.
One official said: “All of the controversy that has arisen over PPI should not make people think that they should disregard this cover, as it can be very valuable. However, it should make people think about checking policies to ensure that they are suited to their needs and make them shop around for the most competitive deals.”
- Headline APRs may not be as impressive as they sound Consumers that are falling for glossy ads advertising headline APRs on borrowing are being warned to watch out and act carefully, as the seemingly attractive headline rates offered by some lenders may not be quite
- Massive fine for A&L over PPI The Financial Services Authority has come down hard on one lender over the mis-selling of payment protection insurance, or PPI, fining it a record £7 million. Following investigations the UK's financial regulator has fined the
- Competition Commission states still a problem with loan insurance sales Officials from the Competition Commission have stated that there is still a serious problem with the sale of payment protection insurance, which is sold alongside loans and other forms of credit. This type of cover
- PPI still being mis-sold to millions Over the past couple of years there has been a major crackdown on the sale of Payment Protection Insurance to consumers that were not suited to the plans. However, according to consumer campaign officials and
- Young would-be tenants getting ripped off online It has been reported that an increasing number of younger people looking for a place to rent are being ripped off online. In fact, according to some officials younger would be tenants are finding themselves
Comments
Got something to say?