Yep, It's a Scam

You know, those inserts in your credit card statements offering “insurance” that will pay your payments if you become ill or unemployed.

Over in the UK there is a “super complaint” (honestly, I love the proper English language) calling for the Office of Fair Trading to launch an investigation into payment protection services.

Now, I have always heard that this type of insurance is a bad idea and very difficult to even make a claim and use the coverage. There is help, though. If you have been Missold PPI you can make a claim to have the payments returned to you.

And before you sign anything that claims to make your payments for you follow these tips:

1. Decide whether you actually need this insurance. It’s costly and may well not
be worth it.
2. Always read the small print and make sure it’s right for you. Check before signing any credit or car finance agreement that PPI is not included automatically – it should always be optional.
3. Check out the common exclusions to make sure that you and all your circumstances are covered.
4. When taking out a loan or a credit card over the phone always listen
carefully to what you are signing up to.
5. Always ask the insurance company for a copy of the payment protection policy, this is either the summary of cover or a certificate
6. Check to see if your life assurance is a cheaper way of making sure that a loan will be repaid if you die. Your employer’s sick pay scheme may be enough to cover repayments should you become ill.
7. Be aware that insurers can reject claims on the basis of age, self-employment,
pre-existing medical conditions, mental health problems and disputes about
medical conditions.
8. Always check that the insurance will cover the whole debt.
9. Make sure you know who your insurer is and how to contact them in case you need to make a claim.
10. If you think you have been the victim of mis-selling or find your claim is refused unreasonably, complain using the insurance company’s internal complaints procedure. If you are not satisfied with the response, take your complaint to the Financial Services Ombudsman.

And remember, if it seems too good to be true it probably is.