As there have been cases where payment protection insurance (PPI) is grossly misused, it is better to avoid it under any circumstances. While you are going for loans, make sure that you avoid any kind of PPI unless and until you are really interested to go for the same. That must be kept in mind at the outset.
What Compels One To Make PPI Claims
As payment protection insurance is meant to protect the borrower in case he meets with an accident, become jobless, or fall sick, usually it has been seen that payment protection insurance was delivered to the borrower even without his knowledge. In some extreme cases, the borrower was not aware even that he has PPI with him along with its exorbitant cost he is paying for years. Now that is where one feels cheated as far as PPI is concerned. And, it is unfortunate but true that in majority of cases the payment protection insurance was mis-sold.
Citizens Advice Bureau
It is a plain fact that PPI claims constituted the biggest financial rip-off the last decade,. According to CAB, payment protection insurance is largely serving the purposes of the other source, the lender instead of the borrower for which it was actually meant. So, it means that the theory behind PPI is right, however, the problem is primarily related to the exorbitant pricing, which is unnecessarily levied on to the borrower.
One of the best solutions to strike the best deal as far as payment protection insurance is concerned, it is getting the flexibility at the outset. It is really important to understand the significance of flexibility factor when it comes to payment protection insurance.
By the term flexibility, one must note that it is basically taking into account ones financial position that might change with the passage of time. If one is clear on this front, he reduces the payment protection insurance risk factor to a considerable amount.
Beware of Long Term Policy
As there are banks that might put an individual in a difficult position, one must be aware of the long term policy delivered by them without proper information. As there are banks that are delivering expensive PPI policies and harming the customer as a result, there is a possibility where one might get harm due to that. In some extreme cases, it has been found that it becomes very difficult to cancel the PPI policy and that is where one enters into a deep trouble.
However, most standalone PPI policy are delivered on a short term monthly basis. This pertains to the insurance cover, which is delivered as per your wish in terms of time.
Making PPI Claims
If you follow above mentioned guidelines and even then become a victim of PPI mis-selling, it is better to go for a? PPI claims in time. Going for a PPI claim will make you secure as you will not only get your hard earned money back, but will be in a position to stop paying the installments at least the moment you initiate a PPI claim case.