Get VIP Protection Of Your Life

 
If you’ve ever taken out a personal or secured loan, a mortgage, credit card or store card then you were probably sold Payment Protection Insurance (PPI) at the same time.  PPI is in theory a good idea.  It covers your repayments if you can’t work because you become ill or have an accident or if you are made redundant – provided you are in full time PAYE employment and meet certain conditions.   Most PPI policies won’t cover you for back pain or stress or if you’re on a short-term contract or self-employed.  Many will not pay out if an illness stopping you from working is linked to a “pre-existing medical condition”.

Even if you do qualify, PPI linked to mortgages, credit cards or store cards normally pay out for a limited amount of time (a year usually) and  some credit card PPI only covers the minimum monthly payment, meaning your balance may never reduce!  Most PPI policies only last for five years, so if your loan or finance agreement lasts longer than this, you’ll still be paying interest on insurance that has long since expired!

As well as being not quite as comprehensive as you thought, PPI is also expensive!   According to a recent Citizens Advice Bureau survey, PPI can add at least 20% or more to the cost of your credit (on average that’s an additional £2000-£3000 on a five year loan for £7,500.00) and since it’s estimated that there are over 20 million policies throughout the UK, that’s generating almost £5 billion worth of premium income for the insurers!   That same CAB survey found that 85% of people who had attempted to claim on their policies had been refused.  Worse still, in June 2008, the Competition Commission found that average insurance payout ratios were:

• Car Insurance: 78%
• Home Insurance: 54%
• Mortgage PPI:  barely 28%
• Personal Loan PPI: a depressing 15%
• Credit Card PPI:  a pathetic 11%!

So how do you know if you’ve been mis-sold a PPI plan and what can you do about it?  The rules have been tightened up considerably in the last two years.  If you were sold PPI before 14th January 2005, most firms or advisers would be still covered by a code of practice set by the Association of British Insurers (ABI), the General insurance Standards Council (GISC) or the Finance and Leasing Association (FLA).  All three codes of practice required advisers to provide information at the time the insurance was taken out to help you decide if the policy was suitable for you.  Advisers and firms were (and are) required to cover those points.  There’s a good chance you were indeed mis-sold (and can therefore recover your hard earned cash) if you can answer ‘NO’ to one or more of these questions:

• If the insurance was optional, was that made clear to you?
• Did the adviser tell you about any significant exclusions (especially pre-existing medical conditions) under the policy?
• Did the adviser make it clear you would have to pay for the insurance up front in one single payment and did you know you would be paying interest on it?
• If your loan or finance agreement was for longer than five years, did the adviser tell you that the insurance would run out before you had finished paying for your loan or finance agreement?
• Did the adviser tell you that you would continue to pay interest on the insurance premium, even after the insurance had expired?

So if you think you may have been mis-sold PPI and want to recover those additional charges and costs, contact us today to find out more and take action! Visit http://www.CreditIssuesUK.co.uk and take the two minute test and find out if you qualify.

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www.uk-mortgage-protection.com is where you will find the award winning UK mortgage protection insurance by British Insurance. Get an instant quote now at www.britishinsurancequote.com

Help answer the question about payment protection insurance

Mortgage Protection Insurance for my UK home. I need it, but which insurance company shall I choose?
I have been offerred mortgage payment protection insurance by my mortgage lender, but it seems a bit expensive.
I think my job is OK, but I do worry as there have been a few people made redundant recently. There seems to be a lot of mortgage protection insurance online on Google UK, but does anyone have any experience of any companies or more to the point, has anyone been made redundant and had to claim with their mortgage protection insurance provider?