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Payment
Protection Insurance has been mis-sold
by banks and lenders throughout
Ireland and as a result there are
potentially hundreds of thousands
of consumers who are paying expensive
monthly premiums on Insurance cover
which will never cover them, which
they did not request and which they
were led to believe was compulsory.
Payment Protection Insurance is
NOT a compulsory insurance cover
which consumers have to take out
when securing credit. Under the
terms of the Consumer Protection
Code this policy should only be
sold to consumers who request it
and who will benefit from it. Many
banks and lenders have used pressure
tactics throughout the years selling
Payment Protection so that they
could reap the rewards of the annual
revenue streams it provides which
is estimated at over €400m
per annum. |
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What
is Payment Protection Insurance? |
| Payment
Protection Insurance is an insurance
policy sold alongside forms of credit
such as Mortgages, Loans & Credit
Cards. The purpose of Payment Protection
is to provide consumers with an
insurance policy on their repayments
should they become unable to work
for reasons such as death, accident,
illness or redundancy. In theory
these policies sound fantastic however
the reality is that they are not
always are good as they claim to
be. Payment Protection Insurance
is extremely expensive, has low
payout rates and it is unfortunately
not always sold to consumers who
requested it and who will benefit
from it. |
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| Why
has Payment Protection Insurance been
mis-sold? |
| The
harsh reality is that Payment Protection
has been mis-sold by banks and lenders
to increase profits and not to protect
consumers. On a €10,000 loan a consumer
can expect to pay as much as €2000
extra just for PPI and on a credit card
it can equate to as much as 8.5% of a
monthly balance. On a mortgage the figures
increase quite considerably. You can expect
to pay €4.75 a month for every €100
outstanding on your mortgage. This over
a term of 30 years can see you paying
as much as €20,000 for the benefit
of Payment Protection Insurance which
in many cases will not cover you should
you need to use it. Payment Protection
is an extremely lucrative insurance policy
and it is easy to see why it has been
mis-sold. |
| How
has Payment Protection Insurance been
mis-sold? |
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Payment
Protection Insurance policies have
a number of exclusions in the fine
print of the terms and conditions
which can sometimes prevent a payout.
If you have Payment Protection you
may not be able to claim if:
• You are under 18 or
over 65
• You work less
than 16 hours a week
•
You are self-employed or unemployed
• You have existing medical
conditions
• You are
on contract or temporary work |
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Outside of the exclusions within the terms
and conditions of Payment Protection Insurance
it is often sold to consumers who are
told that it is compulsory. This is not
the case as Payment Protection is an OPTIONAL
cover.
Consumers have also been pressurised into
taking this expensive Insurance Policy
as a result of heavy handed sales techniques
used by sales staff eager for the juicy
commissions Payment Protection generates.
As well as aggressive sales techniques
Payment Protection has often been sold
to consumers who did not request it. It
is not uncommon to hear of consumers discovering
PPI having never requesting it. |
| How
I know if I have been mis-sold Payment
Protection? |
| If
you have taken out a Mortgage, loan or
credit card within the last 6 years it
is advisable to check if you were sold
Payment Protection Insurance. If you have
this policy it is advisable to check the
terms and conditions of the policy to
see if there are any exclusions which
will prevent a payout should you need
to use it. If there are exclusions which
were not explained to you in advance of
obtaining the cover contact us and allow
us to help you reclaim your PPI using
our *No Win No Fee process. |
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