Loan Payment Protection Insurance Still Facing Problems

Loan Payment Protection Insurance Still Facing Problems
Despite the​ fact that the​ Financial Services Authority (FSA) investigated the​ payment protection insurance (PPI) sector and set out guidelines which those selling the​ cover were to​ follow,​ over 4,​000 cases of​ mis-selling are being investigated in​ 2018 .​
While this fact alone is​ bad enough,​ the​ figure is​ twice that of​ the​ year before,​ giving consumers cause for concern when buying loan payment protection insurance.
It was hoped that mis-selling would cease following on​ from the​ FSA,​ Office of​ Fair Trading and Competition Commission investigations,​ but with the​ figure doubling it​ seems that much more has to​ be done if​ mis-selling is​ to​ end .​
The majority of​ mis-selling occurs with the​ high street lenders who sell the​ cover alongside their loans,​ putting huge profits ahead of​ the​ consumer’s best interests .​
Loan protection is​ a​ huge profit maker which rakes in​ over £4 billion a​ year and greedy high street lenders do not want to​ lose this profit margin .​
A far better way to​ purchase loan payment protection insurance is​ to​ take out the​ cover with a​ standalone specialist provider .​
Always make sure when taking out a​ loan or​ credit card that the​ cover has not been included because although this should be mentioned it​ has been known to​ have been included without the​ consumer being aware .​
a​ specialist provider will be more ethical and will make sure the​ consumer has access to​ the​ key facts of​ the​ cover and so known about the​ exclusions which could stop them from being eligible to​ claim .​
Common exclusions include if​ you​ only work part time,​ suffer a​ pre-existing illness,​ are of​ retirement age or​ are self-employed but there can be others .​
Once you​ have checked the​ exclusions to​ determine if​ loan payment protection insurance would be suitable then cover could begin to​ provide you​ with a​ tax free income from between the​ 31st and 90th day of​ being out of​ work .​
If you​ continued to​ be out of​ work then the​ cover would provide you​ with an​ income to​ take care of​ your monthly loan repayments for between 12 and 24 months .​
This would give you​ great peace of​ mind and help to​ keep you​ out of​ debt at​ the​ very least .​
A change for the​ better is​ on​ the​ horizon with the​ introduction of​ comparison tables in​ March 2008 .​
It is​ hoped that the​ comparison tables will lead to​ the​ family of​ protection policies being more transparent to​ the​ consumer and so are able to​ decide which product would be more suitable .​
This will be achieved by a​ series of​ questions which the​ consumer will answer and lead to​ the​ right payment protection product .​
Along with this information will be given regarding the​ exclusions and also the​ total cost of​ the​ protection which means the​ consumer is​ able to​ make an​ informed decision regarding the​ suitability of​ the​ product .​
While the​ comparison charts are a​ step in​ the​ right direction when it​ comes to​ the​ consumer getting the​ right advice they cannot replace the​ advice and information an​ independent specialist provider can give .​
They also cannot change the​ fact that a​ standalone provider will offer the​ cheapest premiums for loan payment protection insurance which can save you​ hundreds of​ pounds on​ the​ cover.

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