www.LoanStarLending.com Payment Protection Insurance has attracted widespread criticism
in recent years. In theory PPI is not a bad product, however the way in
which it has been sold by vendors has resulted in the product being
called the "most complained about financial policy" in recent times. In
particular the policy has attracted complaints for its abnormally high
rejection rates compared to other types of insurance products.
www.LoanStarLending.com
The policy is designed for use during times like sickness, unemployment, accidents or injuries to cover any outstanding loans, since a borrower is unlikely to be able to service repayments due to the above-mentioned situations. In theory, PPI can be a very convenient thing to fall back on. It is designed to protect the borrower from defaulting on their agreed repayments if the loose their primary source of income. However the are many contentious issues with the product, especially how it is sold and who it was sold to.
So is Payment Protection Insurance good or bad?
The main reason Payment Protection Insurance has such a bad reputation is the widespread mis-selling at the point of sale by vendors. PPI mis-selling can happen for a number of reasons, in many cases, PPI is simply not fully explained to a consumer and it has been reported that some consumers were told the policy was compulsory when taking out their loan, mortgage, or credit card. If you are ever asked to purchase PPI, the best advice is to take your time and understand that you do not have to purchase PPI from a vendor. Take the time to compare products available on the market and find a policy which best suits your financial needs.
Payment Protection Insurance is certainly not a product which will suit everyone, it is important that consumers are fully aware of any exclusions and clauses within their agreement which may prevent them from making a claim. However in some extreme cases it has been reported that a number of consumers were paying for PPI without actually knowing about it.
www.LoanStarLending.com
There are times when PPI becomes mis-sold because a lender tells a borrower that purchasing PPI is required alongside a new credit card, loan, or mortgage. But the truth is, borrowers are free to purchase PPI wherever and from whoever they want, it should never be a requirement to purchase it from a particular lender. Sometimes, borrowers are not given enough information about PPI and are charged for it even if they do not know about it. There are other ways in which banks and other lenders engage in PPI mis-selling. Fortunately due to increased public awareness, it has become a lot easier to identify signs of PPI mis-selling. There have also been a string of new rules introduced which it is hope will curb future mis-selling at the point of sale.
The policy is designed for use during times like sickness, unemployment, accidents or injuries to cover any outstanding loans, since a borrower is unlikely to be able to service repayments due to the above-mentioned situations. In theory, PPI can be a very convenient thing to fall back on. It is designed to protect the borrower from defaulting on their agreed repayments if the loose their primary source of income. However the are many contentious issues with the product, especially how it is sold and who it was sold to.
So is Payment Protection Insurance good or bad?
The main reason Payment Protection Insurance has such a bad reputation is the widespread mis-selling at the point of sale by vendors. PPI mis-selling can happen for a number of reasons, in many cases, PPI is simply not fully explained to a consumer and it has been reported that some consumers were told the policy was compulsory when taking out their loan, mortgage, or credit card. If you are ever asked to purchase PPI, the best advice is to take your time and understand that you do not have to purchase PPI from a vendor. Take the time to compare products available on the market and find a policy which best suits your financial needs.
Payment Protection Insurance is certainly not a product which will suit everyone, it is important that consumers are fully aware of any exclusions and clauses within their agreement which may prevent them from making a claim. However in some extreme cases it has been reported that a number of consumers were paying for PPI without actually knowing about it.
There are times when PPI becomes mis-sold because a lender tells a borrower that purchasing PPI is required alongside a new credit card, loan, or mortgage. But the truth is, borrowers are free to purchase PPI wherever and from whoever they want, it should never be a requirement to purchase it from a particular lender. Sometimes, borrowers are not given enough information about PPI and are charged for it even if they do not know about it. There are other ways in which banks and other lenders engage in PPI mis-selling. Fortunately due to increased public awareness, it has become a lot easier to identify signs of PPI mis-selling. There have also been a string of new rules introduced which it is hope will curb future mis-selling at the point of sale.