Save Yourself From Mis Sold Payment Protection

There is a chance that when you signed up for a loan, you were sold a Payment Protection Insurance along, without your consent. This is known as mis sold payment protection insurance. It is then included in your monthly statement. Moreover, there is a chance that you'll keep on paying for it without actually knowing about it.

You must be thinking that it is a very small thing. But, as per a calculation made by the Citizens Advise Bureau, mis sold payment protection can add up to more than 20 percent of the total monthly cost of an individual. Moreover, it also adds an additional \'a35 billion in the insurer's income, every year.

The Citizens Advice Bureau also states that, a large number of policies are sold by misleading the buyer. They are mislead with the help of an assurance that it will help them by covering their payments, when they'll fall under financial hardship.

The reality is far from this assurance, as there are many conditions that are given out with the policy. These conditions make it difficult for the common man to file a claim. After that, the buyer is left with nothing but regret.

Another survey conducted by The Citizens Advise Bureau states that almost 85 percent people fail to make claim on their payment protection insurance.

The Citizen Advise Bureau also states that it is not illegal if a lender insists on a borrower to sign up for a payment protection as an inherent condition. But, in such a case the cost has to be included into the APR. In absence of this, the agreement will not remain enforceable.

Usually, the payment protection insurance excludes people who are actively working on the date of the sale. But, it is advisable for you to check the terms and conditions. They may feature some restrictions on a person's age and the number of hours for which he/she has worked each week.

Sometimes, self-employed people and people employed on a short-term contract are not eligible for a payment protection. Although, some people may be provided a cover, their insurer may restrict the benefits available under the protection.

You might be sold a policy even if you suffer from a pre-existing illness. Pre-existing illnesses consist of depression, backaches and stress. When you'll file the claim, you'll find out that it is not covered under the protection. Most policies exclude pre-existing illnesses and conditions like stress, depression and bad backs.

You should keep in mind that you may be needed to show that you can not get any type of work due to a particular illness.

Remember, you can avoid mis sold payment protection with just a little precaution.