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In spite of the fact that the Financial Services Authority (FSA) looked into the payment protection insurance (PPI) sector and set out rules which those selling the cover were to follow, over 4,000 cases of mis-selling are now being investigated in 2007. While this truth alone is bad enough, the figure is twice that of the year before, giving consumers cause for concern when buying loan payment protection insurance.

It was hoped that mis-selling would cease following on through the FSA, Office of Fair Trading and Competition Commission investigations, but with the figure doubling it seems that much more must be done if mis-selling is to end. Nearly all mis-selling occurs with the high street loan companies who sell the cover alongside their loans, putting huge earnings ahead of the consumer’s best interests. Loan protection is really a huge revenue maker which rakes in over £4 billion a year and greedy high street lenders do not want to lose this profit margin.

A far much better way to buy loan payment protection insurance is to take out the cover with a standalone specialist provider. Always make sure when taking out a loan or credit card that the cover hasn’t been included because although this should be mentioned it’s been known to have been included with out the consumer being aware. A specialist provider will probably be much more ethical and can make certain the consumer has access to the key details of the cover and so known concerning the exclusions that could stop them from being qualified to claim. Typical exclusions include if you only work part time, suffer a pre-existing illness, are of retirement age or are self-employed but there can be others.

Once you have checked the exceptions to determine if mortgage payment protection insurance would be suitable then cover could start to supply you with a tax free income from between the 31st and 90th day of being out of work. If you continued to be out of work then the cover would offer you with an income to take care of your monthly loan repayments for between 12 and 24 months. This would give you great peace of mind and help to keep you out of debt in the very least.

A change for the better is on the horizon with the introduction of comparison tables in March 2008. It’s hoped that the comparison tables will result in the family of protection policies becoming more transparent to the consumer and so are able to decide which product would be much more suitable. This may be accomplished by a series of questions which the consumer will answer and lead to the right payment protection product. Together with this info will be given concerning the exclusions and also the total cost of the protection which suggests the customer is able to make an informed decision regarding the suitability of the product.

While the assessment charts are a step in the right direction when it comes to the consumer acquiring the right advice they cannot replace the advice and info an independent specialist provider can give. They also can’t change the fact that a standalone provider will provide the cheapest premiums for mortgage payment protection insurance which can save you hundreds of pounds on the cover.  

If you want more information on ppi claims, don’t read just rehashed articles online to avoid getting ripped off.

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