With all that has been said about payment protection insurance, or PPI, what is the future of this financial option? First of all, you have to consider that under the right circumstances, PPI can be a valuable option to add to a financial obligation. If you are a young person just starting out, you may want to have such coverage in case you were to suddenly become unemployed through no fault of your own.
You might also want this coverage if you were to become involved in an accident or become ill and could not work for a long period of time. The problem is no with the policy itself it is with the people who sold it. The practices that were used were akin to bullying. Many people were told that they would not be able to get their loan without adding this policy to their loan. And even more people were never explained the coverage and the qualifications. Many people who were mis-sold this coverage would not have been able to use it even if they did become unemployed if they were self-employed, unemployed when they signed up for the loan, or worked for their family.
The banks continue to wait for a deadline to this issue so they can put it behind them but no deadline has been put into place at this time. The financial watchdogs are patiently watching the continuous throng of people filing claims to get back the money they paid for their PPI and there seems to be no slowdown.
With the exposure that PPI has had recently, any reputable financial institution would be smart to follow the rules and not make this coverage mandatory and take the time to explain the exclusions carefully to make sure that the borrower is even eligible for coverage. The spotlight is on and financial institutions cannot afford to make any further mistakes in this area.
One thing that is on the positive side is that a form of PPI, single premium, has been banned. This turned out to be a single sum that took the amount of the insurance and added it to the loan so that the customer had to pay interest on the amount of the insurance as well as the loan.
Part of the holdup in setting up deadlines could be from the banks themselves. Rather than paying these claims promptly so the problem can be put to rest, many are fighting the claims or dragging their feet. This is just keeping the problem in the mainstream and fresh in everyone’s mind.
If you think you have been mis-sold PPI, iSmart can help you find out for sure. We have an easy to use checker that is on our website. Just fill out the information and submit it so we can begin the process of checking your accounts for you. You are under no obligation, and if you find out that you do have reason to file a claim you can continue with our services or file your claim on your own at no cost.