False Comfort
In all of my years of assisting people with financial problems I’ve yet to see anyone win by purchasing payment protection insurance (PPI) or credit protection insurance (CPI).
The add-on premiums are supposed to help consumers in times of financial trauma to make or cover the payments, but the policies are notorious for only providing benefits in either limited situations or with such long waiting periods that they are useless.
Recently, Citizens Advice lodged a "super complaint" with the Office of Fair Trading (OFT) over just this issue. They went so far as to call PPI a "protection racket".
According to a recent Times article, "It found that 85 per cent of its clients who had claimed on one of the policies had been unsuccessful, despite the industry claiming that just 15 per cent of claims are turned down."
PPI falls under the old saying, caveat emptor, "Let the buyer beware".
The add-on premiums are supposed to help consumers in times of financial trauma to make or cover the payments, but the policies are notorious for only providing benefits in either limited situations or with such long waiting periods that they are useless.
Recently, Citizens Advice lodged a "super complaint" with the Office of Fair Trading (OFT) over just this issue. They went so far as to call PPI a "protection racket".
According to a recent Times article, "It found that 85 per cent of its clients who had claimed on one of the policies had been unsuccessful, despite the industry claiming that just 15 per cent of claims are turned down."
PPI falls under the old saying, caveat emptor, "Let the buyer beware".
posted by Your Friends @ Myvesta.org.uk at
9/18/2005 06:33:00 pm
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