Restrictions Placed on PPI Sales to Help Consumers

June 28, 2010 - PRLog -- Following the press coverage that mis-sold payment protection insurance (PPI) consumers have gained over the past few months, the Competition Commission will put a new legislation in place to restrict the sale of PPI when clients choose to obtain finance from banks.

The ruling works in favour of thousands of consumers who are considering taking out payment protection insurance along with mortgages, credit cards and loans. “Many consumers are unaware that they are taking out PPI at the time of the finance consultation” explains PPI refund expert and general business manager for leading PPI claims specialist Payment Protection Refunds Mark Jackson. “The new legislation will allow consumers to shop around for their PPI, avoiding mis-selling and law suits to claim back PPI”.

Good news for consumers, bad news for high street banks, who are expected to lose an important source of income through the legislation. The Competition Commission is set restrict banks from selling PPI to clients at the time of borrowing and up to a period of fourteen days after the finance is obtained. Research by the Competition Commission reports that 75% of all lending PPI policies are currently sold at the time of the loan itself, and some borrowers are even unaware that PPI can be purchased via other outlets, normally for a smaller price.

Though the legislation will save thousands of pounds for new and potential consumers, those who have been mis-sold PPI in the past still have the opportunity to claim back PPI through the expert legal team at Payment Protection Refunds.

To speak to a fully trained advisor about a PPI refund claim, visit the website on www.paymentprotectionrefunds.co.uk

About Payment Protection Refunds: Payment Protection Refunds are a dedicated team of legal experts who can handle the refund claims in payment protection insurance policies. With only a small fee of 20% inclusive of VAT, Payment Protection Refunds are one of the UKs leading claims management companies.  

If you wish to make a claim, complete the Start Your Claim form available on the website and submit and then you will have the option to either download the necessary documents or you can request that we post them out to you. On their return we will proceed with the first stage of your complaint.

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PPI (Payment Protection Insurance) policies were designed to cover the cost of loan repayments in the event that you were off sick or became unemployed. They were mainly taken out with loans, mortgages and credit cards.