Ppi: Was This The Right Choice For You?

By Author: Yossarian Smythe
Total Articles: 25
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You get people selling a lot of things over the phone, on the television or at your doorstep. It is very unlikely that you entertain these people and buy those things that are being sold or promoted. Simply because you do not find the need at that point of time or might not trust all that is being sold so rigorously. However, when it comes to issuing loans and other forms of debts you tend to be very careful and abide by the vendor as per their advice. In such cases, if you were asked to buy something that might benefit your debt management you might think it is fruitful and apply for it without second thoughts. It is imperative, though, to look through the pros and cons of the add-on that is being sold to you or the concurrent costs that it might carry with it and whether you have better offers outside.

Here we are talking about one such plan that is being sold alongside credit agreements known as the Payment Protection Insurance (PPI) plan. The PPI has existed a lengthy period of 15 years and are being successfully sold along with loans and other related agreements wherein the customers are at some level led to believe ...
... that enrolling into this plan is prudent to be able to issue the loan. Many customers fall prey to the miss-selling of this PPI plan. They are either not disclosed complete information of the plan or made to believe the PPI is something that would help them in all circumstances of financial crisis which is not wholly true. The unemployed, self-employed, retired or medical patients with a pre-existing health condition are the ones who are not eligible of the benefits of this plan. However, these people are also sold the plan over the phone by not really enquiring into the customer records or disclosing other important information to the customers.

It is observed that the currently active 20 million PPI plans in the UK that exists after the plan being banned in May 2009, earn the banks and the loan lenders a humungous profit amount of £5 billion each year. Only a meager ratio of people actually do use this plan to its full advantage and the majority of the rest just pay for it throughout the term of their loan calculating up to a huge unnecessary amount overall at the end of the loan term. What is worse is that the insurance term is way lower than the loan term and you may get the benefit of the insurance only for its specified term and would be required to pay the insurance premiums for the rest of the loan term. The ugly truth here is the customers are not even made aware of the fact that they do have similar options outside of the banking institutions. It is the duty of the bank officials to disclose all the relevant details but they fail to do so. The stand-alone plans like PPI that are available come at a cost that is one-third of the cost of the PPI offered by the banks.

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.