Rising unemployment figures* likely to prompt more people to
take out payment protection policies - but online financial data
service urges workers to read
the small print - or risk being turned down for claims
GROWING evidence that more and more people are being
turned down by providers when attempting to claim on their
payment protection policies (PPI) has
prompted a leading financial data service to issue a 'severe
caution' warning. "We are experiencing increasing
numbers of our site users having their claims rejected,
invariably because of technicalities arising from the small
print,"
said
Moneynet chief
executive Richard Brown. "Most vulnerable are the
self-employed and short term contract workers - many policies
discriminate against this profile of worker, so it's crucial to
check the policy details before signing up," he advised.
"Mortgage protection insurance tends to be very
popular at times of economic uncertainty, and many people may
feel panicked into taking out cover with
unemployment figures rising - but, when bought from High Street
lenders, this cover is expensive and the policies may not cover
all eventualities." Brown also warned against
personal loan borrowers wanting to pay off loans early - and
then finding that their PPI cover is non-refundable.
"Many borrowers are obliged to pay up front for their PPI cover,
and then find that the insurance is non-refundable, which means
that even if a well-
intentioned borrower wants to clear the loan early, he or she
will be out of pocket with the insurance premiums paid up
front." *Official ONS statistics (Jan 18, 2006)
showed unemployment rose for a 10th consecutive month to 5% and
to a two year high. Disclaimer: All information
contained in this article, is for general information purposes
only and should not be construed as advice under the Financial
Services Act
1986. You are strongly advised to take appropriate
professional and legal advice before entering into any bin
About the author:
Author: Michael Hanna
About Michael
Michael is a keen writer, and internet marketer living in
Scotland:
Contact details:
E-mail: samqam@googlemail.com Phone: 0131 561 2251
Michael's Website:
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