Payment Protection Market Takes a Turn

I have noticed an interesting turn in the payment protection market. This market includes search terms such as payment protection, income protection, mortgage payment protection and abbreviations such as MPPI (mortgage payment protection insurance) and PPI.

Until recently the paid search results were dominated by companies actually selling payment protection. Recently, however, I have noticed a growing market for people advertising their services over the issue of payment protection insurance. I assume that many of these advertisers are offering a reclaim service and will take a cut of any refunds secured. It seems the banks, mortgage companies, building societies and insurance companies over sold the benefits of payment protection to unsuspecting customers.

Payment protection is inherently high risk. People will only take out a policy if they feel they are at some form of enhanced risk, such as redundancy. Indeed, the demand for this type of policy has been growing as public sector workers feel they may well be victims of the new coalition government's spending cuts. If an employee believes he ot she is at risk of redundancy at the time of taking out the policy they must disclose the material facts. Or otherwise their policy is invalidated. Unfortunately, invalidation is often the case. So you can see why policy holders may well claim that they have been missold.