Mis Sold Payment Protection: Don't Be Short Sold
Mis Sold Payment Protection Insurance (PPI) In a Nutshell:
In an ideal buying and selling situation, payment protection insurance (PPI) is bought in tandem with the purchase of a major item, i.e. a home or car, to protect the insured against losing their property in case a payment (or two) has been missed. It should never (under any circumstance) be mis sold payment protection.
In theory, PPI is a proper safeguard against losing your home, your vehicle, and your hard-earned credit rating in times of financial duress where you can’t make a payment, such as: a job loss (redundancy), a serious illness, or an accident leading to short or long-term disablement.
The problem, however, is that a few PPI policies have been mis sold by their respective providers. And mis sold payment protection plans are typically not a good bargain for anyone except the seller. It will be the goal of this article to briefly outline what you need to look for in a PPI policy and to educate you against being lured into a mis sold payment protection plan. Mis Sold Payment Protection: What to Look For In many cases, payment protection insurance is an excellent investment. Chances are, the money you spend up front to protect you from financial disaster is indeed, money well-spent. There are times, however, when your hard-earned money can be under utilized, if not wasted altogether, on PPI. To avoid such situations, here are some important points to consider. Make sure you shop your options for payment protection insurance. The reason being that many policies purchased from your loan provider, (or worse yet) included as part of the original loan, are often extremely poor values for the money. Here’s a nugget. PPI policies purchased in tandem with loans are often more profitable than the loan itself. Ask a lot of questions such as: “Is this PPI mandatory in order to qualify for the loan?” – If a loan provider says “yes,” don’t let the door hit your back on the way out! Or here’s another… “Since I’m self-employed or retired, will I be able to qualify for benefits if my income is lost or greatly reduced?” – In this case, if the loan provider answers no… (See above response). And last, but certainly not least, another great question to ask any primary loan provider offering PPI is this. “Does this PPI policy cover every instance of sickness, disability, and redundancy? And if not, please specify which instances are not covered.” – This is where you wait for a very detailed and thoughtful response. Trust your instincts and get everything in writing. Mis Sold Payment Protection: A Brief Conclusion In the end, buying a bad set of goods is never fun in any situation. But in the case of mis sold payment protection, the ramifications can be life-altering, if not financially dire. I urge you to do your homework and scour the PPI policy with a fine-toothed comb. Hire an attorney if need be. But don’t allow yourself to be short sold! Life’s too short as it is.
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