It is because of the problems in the fine prints of PPI and how it was mis-sold to people across the nation that led to the wide spread scandal. One of the biggest problems with the PPI policies was that it had very complex fine prints which made it difficult for the people to get coverage when needed.
There are a number of problems associated with PPI and some of them are –
- Mis-Selling – The lenders started to mis-sell the PPI policies to those who cannot even claim it when needed. For example, people who are self-employed or are retired cannot claim PPI.
- PPI has an Expiry Date – PPI was once added to the loan amount as an upfront sum before it was banned by the Competition Commission. These policies had an expiry date of five years. This means that if your loan term lasts for more than five years, the buyer will still have to pay interest on the expired insurance.
- Over-pricing – Adding the PPI to the loan can increase the interest to a largely great sum.
- Short pay-out Periods – Most of the PPI that are linked to mortgages, credit cards or store cards would pay only for a small amount of time. Most of them pay for about 12 months.
- Low Cover Levels – The PPI contracts on many loans covers only the minimum monthly payment which means that your balance will not reduce ever.
Here are the few problems regarding PPI that you need to take note of. If you have PPI, make sure that you go ahead and file for claim at the earliest before it is too late. There is a deadline set for making PPI compensation claim, and any claims after it won’t be entertained. If you think you are too busy to take care of the PPI claim, then hiring a PPI claim management is also a good option. They are experienced in the niche and would ensure that you get your due without any hassle. It is important that you consult with the PPI management companies and hire the best in the field.