Ppi: A Scam Or A Reality?

By Author: Yossarian Smythe
Total Articles: 25
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When is the last time you remember being sold insurance policies along with loans or credit cards? Most of them might have a vague idea and some may not even be aware. This is the truth and very bitter one at that. While we were looking to pay our mortgages via loans or credit cards the companies that offered us the money also offered us an additional insurance policy and claimed that it is for our good. Was it really? May be it would be if you were told what it really was. If you are not aware of what I am talking about already, I am talking about the famous Payment Protection Insurance (PPI) policy.

The concept of the PPI is all good and looks like it was fabricated taking the customer's needs into consideration in times of unseen circumstances like unemployment, sickness or accident. They promised to repay all our debts in these unfortunate instances and make the procedure of claiming the insurance cover easier since the policy was associated with the loan. However, it was found that these lender companies seemed to earn more from the PPI policy than the loan they sold to the customers. This was because, not everyone ...
... claims the PPI and while the payments are made towards the loan and its interest there was a considerable amount of money going into the premiums and there was a high interest applied to the same as well in the bargain. Thus this totally cost massive interest rates on the overall amount in question and loan and credit card companies took undue advantage of the humungous profits made therein. Besides if the PPI was only applicable for a period of 12 months on a 5 year loan the payments would be covered only for that period of a year and the rest of the years are just left uncovered for even though you'll be paying for the insurance.

The worst part is that the customer is not even aware of all these and is easily convinced into subscribing for such add-ons along with their loans without being exposed to complete information. Such credit lending companies lack transparency when it comes to these additional offers and the consumers are the one who bear all the losses in the end. Also, at the time of sale they might not even inquire whether you are unemployed or self-employed because the unemployment cover of the policy is worthless and there are many terms and conditions that apply on what makes you eligible for a repayment of all your debts in such cases. They also should specify on what rules apply to what kind of medical conditions which they eventually fail to do. So in all, if you have been victim to such expensive policies and gaining nothing in return you are eligible to file a suit against them via the many institutions that offer PPI reclaim.

The author of this article knows all about PPI and has written many articles on PPI Claims. And the author has an excellent knowledge in PPI Reclaim and has been in finance sector for years.