PPI pains
Payment protection insurance (PPI) has caused a lot of people a lot of trouble, especially to the many who were provided missold PPI as they were cheated by banks.
Startling statistics on PPI are coming out by the day and none of it really flattering. Arbitrary age limits have been imposed on policyholders and even though it is supposed to cover monthly payments for people who are involved in a serious accident, are badly ill or have lost their jobs, it will not allow someone to make a PPI claim if he or she has severe back pains preventing the person from going to work.
An astounding 85 percent of claims are rejected on some pretext or the other and the ones that are paid out are for nominal amounts, often not much more than the monthly premium for a policy. Credit card users have found that when it came to the monthly payment, PPI would only pay out the minimum amount due which was just enough to show that a payment had been made.
This allowed issuers to pile on the interest and customers have been trying to play catch up ever since, often finding themselves in deep financial trouble. Much of this is because customers are not really told about the benefits, if any, of having PPI. When banks fraudulently sold the policies to customers they did not elaborate on why someone should go in for a policy nor did they give the option to clients to seek a policy elsewhere.
