PPI – The Dilemmas Under Discussion
PPI, Payment Protection Insurance- have you ever come across this word in your financial transactions? Victims would never forget at the same time if you are hearing this word for the very first time then probably this is the right time to educate yourself about the tactics behind PPI. Payment Protection Insurance is often featured as a “Protective scheme” but when you get into the topic in a deeper way then you may understand it is just an illusion.
Payment protection policies are often sold as a part of the deal when consumers take out a loan, mortgage or credit card. This is where things start to go wrong. Without any awareness about the necessary eligible criteria and aftereffects of enrolling, people are just supposed to have one for each like a compulsory compliment. Later when the right time comes to disclose or to utilize the PPI, people get to know about the nooks and crooks of the PPI. For some it may be too late to realize while some others may be quiet lucky enough to escape from serious consequences. All problems encountered by PPI can be put under three major categories. Just check it out to which category you are supposed to be among the three.
Conflict no.1:
Usually the first problem that comes by the way is when the claim on a payment protection policy is turned down. It becomes stressful when the insurance companies refuse to pay showing exclusion of clauses in Small prints as the reason.
Conflict no.2:
The second type of problem involves payment protection policies that may have been “mis-sold”. PPI has been in the news a lot lately, with investigations showing that a lot of PPI policies have been mis-sold to people that won’t be covered as they thought they would be when they paid for the protection. With this in mind it’s never been so important to understand what your policy covers when you take it out.
Conflict no.3:
The third problem that adds up your stress is conflicts about premium refunding. Complaints arise when customers pay off the loan early and in such cases only a small refund is available.
PPI is very often sold to people that can never claim on it. The terms are tightly drawn so that most of the instances where people hope to claim are not covered. Only one in five insurance PPI claims is successful. There has also been evidence of firms forcing customers to buy it, wrongly claiming its compulsory when it isn’t or refusing to give a quote without it. There are even cases where the insurance has been added without the permission of the customer.
