There is so much jargon related to the hot topic of payment protection insurance that the average consumer is likely to be left baffled. It is ironic then that these are exactly the same people who have a right and a need to know about this form of cover. It is hoped that a clearer understanding is developed in the reading of the following jargon buster, thus leaving people with a better chance of making a successful claim.
Payment Protection Insurance
To begin with it is necessary to clear up any confusion over the term payment protection insurance. This form of cover was initially developed as a means of protecting people’s financial interests in the event of illness and injury, but has subsequently been the subject of negative focus. It is now known that PPI was also sold under the names of loan protection insurance and accident, sickness and unemployment cover, sometimes as a way of misleading the unsuspecting consumer.
In the mistaken belief that PPI was by far the best means of protection against unexpected events, many people paid out a monthly premium for their chosen policy. Some even paid out the cash in one lump sum for a single premium policy, leaving them with interest to pay on both the premium and the loan. A significant number of these individuals were left significantly out of pocket when it was found that they couldn’t make a claim on the policy they’d been wrongfully sold.
Many of the banks and lending institutions who managed to sell PPI, only did so under false pretences. While some pushy organisations managed to persuade the consumers that they had little option but to purchase PPI, others failed to mention that it had been included with overly priced general insurance packages. People have subsequently began to claim back the money they paid out for missold PPI.
Illicit practices in the insurance industry have come under increasing scrutiny from the Financial Services Authority (FSA). This high profile and influential institution has set up laws to reduce the possibility of any future misselling and pursued legal cases against those companies who played their part in the PPI scandal. Just recently the FSA won an important case involving the British bankers association, leaving the banks with little option but to pay back the money that they had scandalously made by misselling PPI.
Consumers can be very glad that they have organisations such as the FSA and financial obundsman working in their best interests. The latter of these service providers has provided much needed assistance to those claimants who have initially been denied the money they spent on PPI. As an impartial body the obundsman ensures that such cases are properly resolved.
Yorkshire based SEO consultant, Lyndon Miles works on behalf of clients to promote their business online through informative articles such as on PPI Claims and how to claim PPI Compensation
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