Fairinvestment.co.uk has welcomed the new measures being introduced in the payment protection insurance market, which it is hoped will prevent incidents of mis-sold PPI, but this kind of protection can still offer financial security, says the comparison website.
The Competition Commission has recently laid out plans for implementing measures it announced in January for the payment protection insurance sector, such as preventing it being sold at the same time as the product, and for the following seven days, and banning the sale of single-premium PPI.
Julie Smith at Fairinvestment says, “The changes in the payment protection insurance industry add up to great news. Single premium PPI can make borrowing much more expensive, because the cost of the insurance is added to the total amount borrowed and accrues interest. This is particularly relevant if the loan is paid off early, as the full cost of the PPI has to be paid irrespective of how long the loan was actually in force. With lenders not being allowed to sell PPI at the time of sale, or in the following seven days, you will have some breathing room, to compare other policies on the market and make an informed decision, not one based on pressure from the provider to sign up on the spot. It can offer you valuable protection. For example, if you suddenly find you are unable to work due to illness or injury, or are suddenly made redundant. Good quality payment protection insurance can help you to keep up with the repayments on their debts, such as mortgages, credit cards, or loans, preventing them from falling into arrears, or facing late payment fees, offering a financial safety net when they need it most."