The Fiasco Of Mis-sold Ppi

Imagine paying double what your loan was worth, in order to have payment protection insurance, and then not be able to claim for it. Well this is the case for some people, and this is why a large-scale investigation into this sector, was implemented by the Financial Services Authority in 2005. It came off the back of the Citizens Advice Bureau, complaining to the Office of Fair Trading.

It is obvious that payment protection insurance can prove invaluable. It is taken alongside borrowing, in order to protect against being out of work, at any point during the repayment of that borrowing. So if you are made redundant or get an injury for instance, you will receive payment to cover that financial commitment until you are able to return to work.


Payment protection insurance policies can be extremely stringent when it comes down to scenarios whereby a person cannot claim. Some of these include being retired, self-employed, having a previous medical history and working part time. Things such as this need to be checked prior to taking out a policy, as you may not be getting the protection you thought.

If all is well, and you have found that it would be conducive to your borrowing, to take out payment protection insurance, then your next step should be to contact an independent broker. One that has nothing to do with the high street financial institutions. Remember that the amount you pay will be relevant to how old you are and the amount you are borrowing.

Payment protection insurance can really aid your recovery. It gives you adequate relaxation time. You can use this to get well or to find another adequate job, because you know you do not have to rush to keep financing your loan. Policies start giving you your tax-free income when you have been jobless for 30-90 days. This depends on the provider, and what their terms and conditions say. This income could go on being paid for anywhere between 12-24 months, which is also provider dependent. This period of time should be enough for you to find alternative employment and to get well again.

At the time of you borrowing money, payment protection insurance will be offered to you. Whilst easily viewable as the simplest option, it is also the most expensive. There are cases whereby insurance is additional to borrowing already taken out, so it needs to be certain that cover is not already being paid. There is also the problem of the minimal amount of information that customers are provided. Lenders from the high street can be severely lacking in the expertise and training that is needed to sell payment protection insurance and it is these poor techniques that have been highlighted during investigation.

It has to be established that you qualify for a policy, and you need to get quotes from your borrower, as well as a separate provider of Payment protection insurance. An independent provider is more knowledgeable, and will give you more accurate advice, so you will know whether a policy is suitable to your needs. In most cases, a lot of high street lenders offer cover that will double the price of your loan. With this in mind, it would be a personal injustice to not get a second quote.

By: Jonathan Walker - Big Blue Tomato

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This article is written by Jonathan L Walker, on behalf of Claims Management UK, specialising in helping people with their Mis-Sold PPI