Identify The Mis-Selling of PPI

There are not a lot of people over the age of twenty in Britain who are not aware of what PPI is, even if they have only heard about it by its full name: Payment Protection Insurance. If you do not understand then here is a nice, concise explanation: PPI is a form of insurance (obviously) that protects a person from having to pay back their borrowing if they find themselves unable to work at any point. The reason may be illness, it may be that the borrower has been in an accident, or made redundant. As long as a person does not quit their job or are sacked through their own volition then ostensibly a PPI Policy covers them. Covered for all types of finance payments such as mortgages, credit cards, and personal loans. The aforementioned explanation of PPI does nothing to suggest that there is anything wrong with PPI. As a concept, PPI certainly is a great thing. It is the banks that have turned it into a bad thing by virtue of the unscrupulous techniques that are employed within its selling. For instance, the consumer is lead to believe that they will be able to make a claim if they become ill. People are unaware that they will not be able to make a claim if they become unable to work because of having a bad back or because of suffering from stress. What with stress and bad backs being the main reason why people have to have time of work, it would appear that PPI has functions so that many people that need to make a claim cannot. As well as this, there is the fact that PPI policies are unjustly expensive. A person can get a PPI policy from an independent insurance company for a fraction of what the banks charge for them. It is also possible to get a superior Income Protection Insurance package that will cost a great deal less. The PPI that banks sell is overpriced anyway, but what the banks do to make sure that the policies make them even more money, is they sell the policies in a single premium capacity. What this means is that the whole cost of the cover is added to the cost of the borrowing so that interest can be charged on it for the duration of the loan. So if a customer has a five year personal loan and the policy is only for two or three years, then the policy holder spends a great deal of time paying for cover that they no longer have.There are other negative aspects to PPI, also. For instance, customers who require credit are lead to believe, by the call-centre-operatives to whom they speak in order to be screened for borrowing, that there is no way that credit will be considered unless PPI is procured alongside the borrowing. It is estimated that over two million people have been sold PPI under false premises: only 11% of policyholders are successful when it comes to making a claim! It comes as little solace to those that were mis-sold policies in the past, that single premium PPI is no longer legally allowed to be sold, as of May 09. Should you be of the opinion that PPI has been mis-sold to you then it is important that you make inroads into getting recompense because there is no reason in the world that can justify the rapacious actions of the banks. There are multitudes of companies out there that will win you your PPI fees back for you. The only problem is that some of these companies charge whereas others do not. Therefore, it is down to you to be doing your research because there is no reason why you should be paying any more.