PPI: Why Claim?

Many of the major high street banks have been fined vast amounts for miss-selling PPI. On January 30th 2009 almost all high street banks stopped selling PPI as a single premium added to loans or credit cards. Single Premium PPI is due to be eradicated from the market place when new measures introduced by the Competition Commission come into force.

Statistics by the FSA (Financial Services Authority) have shown that only around 9% of policies would ever pay out when a client tried to make a claim. Numerous clauses within the terms and conditions prevented PPI policies from paying out when a client became sick or unemployed.

PPI (Payment Protection Insurance) has been massively overvalued and clients could in fact purchase PPI cover far cheaper from alternative sources than their loan provider.

Many people are unaware that PPI has been added to their loan or credit card and as the cost can run into £000’s (thousands) this can be a costly oversight by the client and unfair practice by the lender.