Loan Payment Protection Insurance Still Under Investigation By The Fsa

Loan Payment Protection Insurance Still Under Investigation By The Fsa

Loan Payment Protection Insurance Still Under Investigation By the​ Fsa
Loan payment protection insurance can give you​ an​ income with which to​ continue meeting your monthly loan repayments each month if​ you​ were to​ find yourself out of​ work due to​ suffering from an​ accident,​ long term sickness or​ unemployment by way of​ involuntary redundancy .​
While it​ can be a​ safety net the​ cover isn’t suitable for all circumstances and if​ you​ want it​ to​ do the​ job it’s designed to​ do then you​ have to​ understand the​ product and the​ exclusions within a​ policy .​
The exclusions within loan payment protection insurance are what can stop you​ from being able to​ claim on​ a​ policy and determines whether the​ cover is​ suitable for your circumstances .​
Some of​ the​ most typical exclusions are being in​ part time work,​ retired or​ having suffered from an​ illness within the​ last 2 years that is​ the​ reason for you​ being off work when you​ claim .​
You do have to​ check the​ key facts and small print of​ loan payment protection insurance policies as​ they can differ from provider to​ provider .​
Once you​ have determined the​ suitability of​ loan payment protection insurance then it​ would begin to​ payout a​ tax free income once you​ have been out of​ work for a​ period of​ time stated at​ the​ onset of​ the​ policy which can be anything from 31 days to​ 90 days .​
Once the​ cover has kicked in​ then it​ would continue to​ give you​ an​ income for up to​ 12 months and with some providers for up to​ 24 months .​
Loan payment protection insurance isn’t without complications and it​ has seen problems which were highlighted in​ 2018 after the​ Office of​ Fair Trading received a​ super complaint from the​ Citizens Advice and an​ investigation by the​ Financial Services Authority resulted in​ several high street lenders receiving fines for mis-selling policies .​
Currently in​ the​ hands of​ the​ Competition Commission who are conducting an​ in-depth inquiry into the​ sector which is​ expected to​ end in​ February 2009,​ the​ sector is​ still also under the​ eye of​ the​ FSA .​
The latest fines to​ be handed out have been personal fines to​ Chief Executives of​ firms after the​ latest round of​ investigations revealed that payment protection is​ still confusing to​ consumers,​ with the​ high street providers and banks not always making it​ easy to​ understand when selling .​

For now stick with standalone providers for loan payment protection insurance to​ make sure you​ get the​ advice and information you​ need along with the​ cheapest premiums.

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