Payment Protection Insurance (PPI) is otherwise known as accident, sickness and unemployment insurance; though as publications everywhere continue to report there have been countless cases of already unemployed or retired people wrongly sold the insurance. This has left millions of people in the UK vastly out of pocket. It is for this reason that many well-known banks and loan companies are now finding themselves obligated to provide compensation for the unnecessary monthly PPI instalments they received from their customers.
While banks and loan companies remain entitled to continue offering PPI to customers, in doing so are now confined by a strict framework imposed by the Financial Services Regulator (FSA) and the Financial Ombudsman (FOS). Many banks and well-known companies have ceased to offer it in the first place, however; Lloyds, NatWest, RBS and HSBC amongst them. This in turn makes it difficult for consumers to purchase the insurance in the first place.
Competition Commission's Deputy Chairman and Chairman of the PPI enquiry freely states that 'Insurance to cover periods of unemployment, sickness and following accidents can serve a significant need in our society.' The Competition Commission (CC) is an independent body set out to ensure healthy competition between UK companies for the overall benefit of consumers and formed a framework for future sales of PPI to this extent. These guidelines are designed to ensure the sellers of PPI uphold its great potential to provide a real use for future consumers.
Another significant reason that consumers have stopped purchasing PPI is down to the fact that most companies have ceased to offer it in the first place. The bigger companies with a vast reputation to uphold do not wish to be seen to still be associated with an insurance that still causes disquiet amongst the masses. They have thus discontinued the insurance altogether, often dedicating a hotline or online subpage to information on how to claim PPI money back, rather than take out a new PPI plan. Banks such as Natwest, Lloyds TSB and HSBC have all stopped the sale of PPI, along with many others.
The best advice to follow is to ensure the company you are considering purchasing the loan from, has policies that have been fully researched and understood. In short, do not sign on the dotted line until you are absolutely comfortable with the wealth of information the company has provided you with. Though the scandal surrounding PPI naturally recommends a cooling-off period for this brand of insurance, it should not be discounted altogether, sure to emerge as a functional addition to loans of the future.
While banks and loan companies remain entitled to continue offering PPI to customers, in doing so are now confined by a strict framework imposed by the Financial Services Regulator (FSA) and the Financial Ombudsman (FOS). Many banks and well-known companies have ceased to offer it in the first place, however; Lloyds, NatWest, RBS and HSBC amongst them. This in turn makes it difficult for consumers to purchase the insurance in the first place.
Competition Commission's Deputy Chairman and Chairman of the PPI enquiry freely states that 'Insurance to cover periods of unemployment, sickness and following accidents can serve a significant need in our society.' The Competition Commission (CC) is an independent body set out to ensure healthy competition between UK companies for the overall benefit of consumers and formed a framework for future sales of PPI to this extent. These guidelines are designed to ensure the sellers of PPI uphold its great potential to provide a real use for future consumers.
Another significant reason that consumers have stopped purchasing PPI is down to the fact that most companies have ceased to offer it in the first place. The bigger companies with a vast reputation to uphold do not wish to be seen to still be associated with an insurance that still causes disquiet amongst the masses. They have thus discontinued the insurance altogether, often dedicating a hotline or online subpage to information on how to claim PPI money back, rather than take out a new PPI plan. Banks such as Natwest, Lloyds TSB and HSBC have all stopped the sale of PPI, along with many others.
The best advice to follow is to ensure the company you are considering purchasing the loan from, has policies that have been fully researched and understood. In short, do not sign on the dotted line until you are absolutely comfortable with the wealth of information the company has provided you with. Though the scandal surrounding PPI naturally recommends a cooling-off period for this brand of insurance, it should not be discounted altogether, sure to emerge as a functional addition to loans of the future.
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