Debt warning for PPI holders

Wednesday 28th May 2008

Millions of Britons hoping to avoid falling into debt by taking out payment protection insurance could find that their cover is worthless, a consumer magazine has warned.

Consumers take out PPI along with a new loan, with the cover ostensibly offering to meet debt repayments if the client is unable to as a result of illness, redundancy or injury.

According to new research conducted by Which? around two million consumers have been sold miss-sold cover with exclusions which will negate their chances of submitting a successful claim.

Doug Taylor, personal finance campaigner at Which?, urged those who feel they may have been affected to take action against their PPI provider.

He advised: "If you have a loan and think you might have been miss-sold PPI, now's the time to fight back. Compensation could be just a letter away."

"We've always known that people were being miss-sold PPI, but we were still amazed to discover the scale of it. It appears that salespeople are chasing their commissions, their bosses are chasing profits. Where's the sense of responsibility to the customer?"

News of the magazine's claims comes as National Debtline, a charity which provides debt advice, has reported a 35 per cent increase in enquiries relating to mortgage debt this year.

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