There are various types of insurance and each one of these policies offer different kinds of protection and coverage. For those who are having problems with their loans, credit cards, and other similar financial obligations, the best insurance policy is the Payment Protection Insurance plan. A Payment Protection insurance policy covers monthly payments such as loans and credit card imbursements. PPI helps insured individuals to accomplish financial responsibilities during hard economic times. A person can be covered by a PPI policy when he or she is incapable of paying certain debts due to physical injury caused by accident, illness, and redundancy.
Recently there has been a controversy pertaining to private lenders who are involved in mis selling PPI policies. Mis sold PPI is in fact very rampant these days that even giant lenders such as HSBC and Capital One have been involved in process. Mis selling PPI policies is now considered routine among many lenders but this does not mean that the authorities are turning a blind eye on this issue. A lot of private lending companies have been fined and given corresponding sanctions due to their involvement in mis sold PPI policies. Thousands of insured individuals are even processing PPI claims due to this.
One of the most burning questions pertaining to this issue is why PPI plans are often mis sold? The answer is very simple. Companies and individuals who provide credit card services as well as loans create more income from insurance policies that come with loans. In the process, the profit from selling insurance plans alongside loans is greater than that of an existing loan itself. Today, there are about 20 million PPI plans in the UK alone. Almost 5 billion every year is generated through these PPI policies. This makes the cost of insurance greater than the interest of existing loans.
For those who purchased their credit cards or acquired their loans through the Internet, the process of making a PPI claim can be more difficult. However, certain measures are now being implemented for people who are making a PPI claim or a reclaim online. Aside from avoiding kind of difficulty via the assistance of government agencies, there are also specific to identify mis sold PPI policies. You can visit helpful sites that can provide you some helpful tips regarding this matter. It is also important to have your agent explain everything about your insurance policy as well Payment Protection Insurance claims.