Payment protection insurance (PPI) is an insurance product that helps consumers to cover the cost of loan repayments should they be unable to do so through ill-health, loss of a job or an accident. However, it has been reported that as many as 80% of those who had PPI were mis-sold the product, causing them to pay insurance premiums for something they did not even need.
The future of PPI is already changing for the better. The Financial Services Authority has fined several high profile lenders for mis-selling consumers PPI and the Competition Commission has also created a new set of rules surrounding the selling and decision making process of PPI policies.
It is perhaps unfortunate that the mis-selling of PPI has made the headlines at the time when it is of utmost important to have protection against the loss of income that would therefore impact the ability to repay any loans or credit card bills. Despite the product being mis-sold to potentially millions of consumers, PPI can still support those who find themselves in the position of being unable to meet the likes of mortgage and credit card repayments.
One particular demographic who might find PPI an important consideration are the self-employed. Self-employment figures have rocketed since the start of the recession and as they are usual unable to qualify for unemployment cover, they might consider PPI for financial security.
So despite PPI's bad press, the future for the product is not looking so bleak. PPI remains a good product. The main issue is that people are really struggling to trust the banks at the moment, and the recent bad press about PPI is not helping. However, with strict new rules in place for selling PPI and many banks working on where they went wrong, there is still a place in the financial market for providing this secure product.
The future of PPI is already changing for the better. The Financial Services Authority has fined several high profile lenders for mis-selling consumers PPI and the Competition Commission has also created a new set of rules surrounding the selling and decision making process of PPI policies.
It is perhaps unfortunate that the mis-selling of PPI has made the headlines at the time when it is of utmost important to have protection against the loss of income that would therefore impact the ability to repay any loans or credit card bills. Despite the product being mis-sold to potentially millions of consumers, PPI can still support those who find themselves in the position of being unable to meet the likes of mortgage and credit card repayments.
One particular demographic who might find PPI an important consideration are the self-employed. Self-employment figures have rocketed since the start of the recession and as they are usual unable to qualify for unemployment cover, they might consider PPI for financial security.
So despite PPI's bad press, the future for the product is not looking so bleak. PPI remains a good product. The main issue is that people are really struggling to trust the banks at the moment, and the recent bad press about PPI is not helping. However, with strict new rules in place for selling PPI and many banks working on where they went wrong, there is still a place in the financial market for providing this secure product.
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