PPIs To Be Banned - PPIs (Payment Protection Insurance) To Be Banned?

It has been announced that, from 2010, policy lenders will be prohibited from selling Payment Protection Insurance to people inside seven days of them receiving a credit card or loan.This is hoped to put a curb on drumming up trade by playing on customers fears and anxieties during this difficult time.

There will also be a complete ban on `single premium` PPI. This is where the loan includes the cost of the Payment Protection Insurance,taking in huge amounts of interest.

PIs are supposed to take care of repayments if a person loses their job or is taken ill. However, it is believed that customers have purchased over priced policies that may not even be viable. The lender may not have even confirmed that the policy is suitable for the customer. It is also thought that PPIs may prove more lucrative than the actual loan.

However,there are now new rules set out to combat these practises, but they are not due to begin till next year.

In the meantime,customers are advised to avoid purchasing a Payment Protection Insurance policy from a bank. They are also recommended to reclaim the PPI. A campaign has seen 40,000 free template letters being downloaded, where customers have told of having gotten back thousands of pounds. This has seemed to help the re claimers make their point.

PPIs (Payment Protection Insurance)

If you would like more information on policy mis-selling and free template letters then please go on-line at www.moneysavingexpert.com/ppi.