A few bits about a Mis-Sold PPI
Many people have been miss-sold Payment Protection Insurance (PPI), or have been given loans or credit with PPI already included by various lenders and finance companies without being aware of it. This has been reported in the press over the past few months. However, if this type of insurance cover is appropriate for your needs, then it will give peace of mind and a certain amount of financial protection against adverse circumstances.
These adverse circumstances could be the result of an accident or an illness, or redundancy or some other reason for the loss of income. PPI is designed to cover repayments on your borrowings for a preset period. This type of cover is sold along with all kinds of financial borrowings, such as transactions with credit and store cards, and various secured/unsecured loans.
Some finance lenders will attempt to convince you that PPI must be included with your loan, but this is not true. You should always check on what benefits each PPI contract contains and decide for yourself. You always have the option of taking out a loan without this type of cover. It is not compulsory.
But, remember that Payment Protection Insurance can prove invaluable, as it means you do not have to worry about failing to meet repayments if you are unable to work for a short while due to illness, accident or redundancy. PPI can give you the peace of mind that your payments will be met for you and there will be no danger to your credit rating.
It is important to realise that Payment Protection Insurance can vary quite a lot in price and with some lenders and insurance providers can be costly. It is not compulsory to take PPI with the same party that you are taking your finance through and you are not bound to buy it from anyone. However, most borrowers would like to have the security of this type of cover and it is worthwhile shopping around to get the best deal for your needs.
You should consider whether PPI is suitable for your particular needs. For example, paying for cover against missing repayments after losing your job may be inappropriate for certain types of people, such as the self-employed. Such people would simply be throwing their money away.
Some quotations from lenders will have an element for PPI already included as part of the loan or finance deal. Many people have been unaware that they have been charged for this cover. It is important to check your quotation thoroughly and establish whether or not PPI is part of the loan package.
This article is written by Jonathan L Walker, on behalf of Claims Management
UK, specialising in helping people with their Mis-Sold PPI