n 2005 the Office of Fair products has doubled. There are
Trading received a super currently around 20m payment
complaint from the Citizens protection policies in the UK and
Advice. The complaint related to it is thought that around half of
mis-selling of payment protection these could have been mis-sold
products with some firms offering which is a very worrying thought
cover that consumers could not indeed. There has been some
claim against for huge premiums. improvements, however some firms
While loan protection can be a are still carrying on in their
lifeline to those who are old ways and have made very
eligible to take out a policy little progress in improving
there are exclusions which mean their selling techniques. It is
it is not suitable for everyone. these sloppy sales practices
While the Office of Fair Trading which have given payment
investigated, the Financial protection products a bad
Services Authority (FSA) did name.
also. The FSA handed out fines to
It is also the lack of
several firms and then referred information given at the time of
the sector to the Competition selling the policy that has
Commission. They are currently caused the majority of problems.
conducting an in-depth review of There are exclusions which are
the sector and while some changes seen frequently in the majority
have been seen it was recently of loan protection insurance
revealed that the FSA policies, yet in many cases these
investigated over 4,000 cases in were not highlighted to the
2007.
customer. Being of retirement
While recommendations had been age, self-employed, suffering a
laid down since the early days of pre-existing medical condition or
the investigations, mis-selling working on a part time basis
of loan protection and related could mean you would be
ineligible to claim. Providers getting well, or getting a new
can add in exclusions of their job, without added stress.
own so you do have to check the
Always make sure that you read
terms and conditions of a policy the terms and conditions
thoroughly before buying the loan thoroughly of any loan protection
insurance policy.
you are considering and make good
Choosing to purchase a loan use of the free advice that a
insurance policy from a specialist in payment protection
standalone provider is often the offers. There is more to consider
safest way to buy cover. An when getting quality payment
ethical independent provider will protection than just the premiums
ensure you have the information as we have discussed.
needed to determine the
suitability of a policy. This
illness, accident or unforeseen align="center">
redundancy for between 30 and 90
days. Once cover has commenced it would continue to give you a type="text/javascript">
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About the Author:
Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of loan protection , mortgage protection insurance and income protection insurance.
Article Tags: loan, payment, protection
