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Written by admin on June 30, 2010 – 3:04 pm

Payment Protection Insurance (PPI) is in danger of being labelled a problem product. It is widely known by consumers across the UK about the mis-sale of PPI as there have been so many cases found by the Financial Services Authority (FSA). Despite the mis-selling, PPI cannot immediately be written off as bad news.

Designed to cover monthly repayments on finance if you cannot pay them due to being made unemployed or being unable to work through accident, sickness or illness, if you haven’t got alternative cover, PPI is a good product.

Bringing the bad news is the fact the FSA has found millions of cases where PPI has been mis-sold to customers, the main reason they have found for this is customers are simply not receiving the correct information at the time of being sold the policy. This information breakdown is largely due to staff at finance providers not receiving adequate training.

The FSA however are launching a major crackdown on the way PPI is sold and the training staff must have before able to sell insurance policies. The crackdown is set to revitalise PPI as a product and show customers Payment Protection Insurance is not all bad…..if you need it.

There are of course those who don’t need it and that is half the reason there were cases of mis-sold PPI in the first place.

If you have an employer illness or redundancy cover package, PPI is not the product for you, as your payments are already covered.

If you are self-employed or retired, again PPI is not right for you, as you won’t be able to make a claim. The same goes for if you had a medical problem or existing illness at the time of taking out the policy, you won’t be covered.

PPI is right for some though, if you have no other insurance measures in place to protect your debts, PPI is an ideal product.

The most important thing for customers to remember, is to ensure their debts are covered.