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Car Insurance Watchdog Groups

The Mis-selling of payment protection insurance

After Watchdog, in the last two years, complaints about the personal protective equipment sold in loans Insurance, credit cards and mortgages have increased tenfold.

500 complaints per week by the Financial Ombudsman about the insurance, which works with about 25 percent of those who they have received.

Watchdog, the Financial Services Authority (FSA) call to bring the banking and financial sector in line written.

Borrowers are represented by a staggering £ 1400000000 overpayment a year through this protection insurance, according to an official investigation.

Millions of people were wrong about PPI's informed and cheated to buy them. You have been lied to by dealers, some even customers, unless they do not buy the insurance for the loan, Cards, etc. that they want to qualify told.

There are more than 14 million PPI policies in existence in addition to loans, mortgages, credit cards, store cards and will help finance.PPI car if the borrower suffers a sudden loss of income through unemployment or illness.

There are many examples but where the PPI is for people who have been sold not even cover the claim, as the sick, pensioners and self-employed.

What is unusual about the Complaints to the Ombudsman, is that they have the way they have been sold, rather than people not in a position to assert. The biggest complaint is that people do not recognize that they took out PPI and the cost of the policy was not explained them.PPI may be thousands in order to add the cost of the loan.

In the majority of cases the borrower a one-time premium, which is added to the cost charged for the loan and attracts large amounts of interest.

Some companies have premiums resulting in policy that are often more expensive than deals available increases by a specialist company.

The Commission can not possibly put a cap on PPI charges and stop the banks to sell the policy with other products.

Consumer Group, the? denounced the PPI sold with credit cards as worthless. He said few people are able to successfully argue.

Personal finance campaigner at Which? , Doug Taylor, said: "Credit card PPI modern snake oil - it is a useless product, expensive and poorly designed is.

"As the credit crisis continues resort to, want to protect the people and the peace of mind, but credit card PPI, like a card house, will not give you the support you need. "

A number of well known companies are convicted by the FSA for mis-selling PPI a fine.

The HFC Bank was £ 1,085,000, Capital One bank penalty, a fine of £ 175,000 and GE Capital Bank, a penalty of £ 610,000.

The FSA said: "The FSA is to review the position in the light of the information, which it has received from the Ombudsman Service, and provided the information through its own ongoing thematic work on PPI available.

"It is a decision- take over to take possible action on the basis of this review in due course. "

According to the British Bankers Association (BBA) is PPI is an increasingly important safety net for borrowers, and restricting the way sold, customers could be left exposed, such as economic Conditions deteriorate. "

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