Consumers still unaware as to whether they have a PPI policy

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Customer research throughout August 2012 completed by PPI Claims Advice finds that the majority of consumers do not actually know whether they have a payment protection insurance policy which was mis-sold

payment protection cover and ppi claims advice

During August 2012 the PPI Claims Advice connected with potential payment protection insurance claimants, specifically those who had stated they had taken out a loan or form of credit in the past 10 years to see just how much the general public understood the PPI claims industry and how exactly if affects them.

An analysis of the findings of the customer research showed that only 2 in 10 actually were aware they had a payment protection policy which was mis-sold and which they intended to reclaim. Surprisingly the other 8 in 10 customers had a range of issues such as lack of knowledge or confusion over the whole PPI claims process.

Of those that did not have a full understanding of the payment protection insurance claims process 5 in 10 of the issues were rooted in not knowing how or why a PPI policy could have been mis-sold. Although there were thousands of policies that were mis-sold this was not the case for 100% of the policies.

Other issues regarding payment protection insurance which were brought up through the customer discussions covered worries regarding not having the correct paperwork to identify the payment protection insurance on a loan, mortgage or credit card. Many believed as the loan or credit agreement was historic and had been paid off several years ago they wouldn’t qualify to be able to make a payment protection insurance claim, this was pointed out as being not the case resulting in many starting a claims process for their past loans and credit cards which had a mis-sold payment protection insurance policy attached.

Furthermore a selection of potential claimants who took part in the research were unsure about how to check whether they have payment protection insurance policies attached to multiple forms of credit if they no longer have the paperwork.

The Financial Services Authority (FSA) have stated recently that they plan to crack down on the number of bogus payment protection insurance claims that are being made over the next year. The PPI Claims Advice website (http://www.ppiclaimsadvice.org/) plans on aiding to address the issue by adding useful guides to their website in order to ensure that all of their potential claimants are aware of what a payment protection insurance policy was and most importantly, what factors would make it a mis-sold PPI policy.

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Dr M Mansoor Siddique
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