Ontario Mortgage Information

The numerous cases of PPI claims in recent years have resulted in on heck of a hefty bill for the payment protection insurance industry. But why exactly are so many consumers now deciding to claim back money they’ve spent on PPI?

Well, let’s look at the product first of all. By its very nature, PPI is designed to protect consumers. It’s basically an insurance product for people taking out loans, mortgages, credit cards or other types of financial products. The idea is that in the event that the consumer is unable to meet their monthly payments because of circumstances out of their control (for example redundancy or illness resulting in a cut to their income) the PPI protects them. This sounds like a great idea, right? And it is – in theory.

The controversy surrounding Payment Protection Insurance isn’t the actual product, rather the way that lenders and providers have been selling it. It has recently come to light that a large number of people have been sold policies after being led to believe that applying for one would increase their chances of acceptance in their applications for loans or credit cards. There are other scenarios in which consumers were led to believe that PPI was compulsory.

This is just two of the many examples of PPI mis-selling. Others include people being sold policies on which they would never actually be able to claim on, for example those who were unemployed, self-employed or retired at the time of taking out their policy. There are cases of people not being given time to read the terms or others only finding out they even had PPI months later! The list goes on.

Any company which sells or brokers any form of financial product or service to a consumer has a responsibility to make sure that the said consumer is completely aware of the terms. In the cases that have emerged in recent years, the lenders and brokers have failed and this is why there are now so many PPI claims taking place.

Read more about PPI Claims and find out if you could claim today!