There can be lots of small print accompanying mortgages or loans
Following its latest survey, the Financial Services Authority says it is "cracking down" on those firms that mis-sell payment protection insurance (PPI).
The purpose of PPI is to
provide cover in the event of
a person becoming ill or losing their job.
But the consumer organisation Which? says the regulator could do a lot more to end mis-selling scandals.
We asked for your comments, a selection of which are below. This debate is now closed.
People really ought to live within their means. If they cannot afford to comfortably afford loan or mortgage repayments on a monthly basis, with three months rainy day money tucked away, then don't even consider taking out these long term commitments.
Tony , Uxbridge
I went for a car loan from a well known high street lender. They wanted to charge me £50 a month insurance for a £250 a month loan. I felt highly pressurised into signing up - as if I did not purchase this insurance right there and then, I could not get this insurance later. When I got home I did a bit of research and found a company that would insure me for exactly the same thing for £5.25 a month! The bottom line is go to a bank for money, go to an insurance agent for insurance - and when pressurised into doing something "there and then" - WALK AWAY as they are hiding something.
I have always resisted the pushy attempts to persuade me to take out PPI. It is clear that staff are under pressure to sell this product by the statements they make to encourage its take-up. For instance, when I said that I did not wish to buy PPI I was asked if I had any adult children. When I replied that I did I was told that I should think of them because if I should die with a loan debt outstanding my children would be pursued to repay it. This is, of course nonsense. Any debt would be a charge to any estate I might leave but as my children were not parties to the loan agreement they could not be liable. However, the staff member talking to me insisted that if my child had a home then they could run the risk of losing this.
Although the borrower pays the premium, PPI protects the lender, not the borrower.
Dave K, Wirral
I have PPI on a loan. I have type 2 diabetes so can't claim for sickness. I am a supply teacher so I can't claim for unemployment. I missed a payment because of unemployment and the bank has maintained a constant campaign of five or six calls a day on my home phone and mobile demanding immediate payment accompanied by threats. When I point out that I am supposed to be insured they won't listen. "Not our problem."
I used to run a claims department dealing with PPI claims for a number of companies. My staff genuinely tried to help claimants but we were constantly frustrated by having to decline claims simply because someone had been mis-sold a policy. I think it is wrong when people are sold a policy which they can either never claim on, or at best, only recover a fraction of the premium. Why is it still being sold?
Chris P, Sittingbourne
My brother died recently with outstanding joint loans but because his wife was first named, she can't make a claim. This seems an unfair way to treat joint loans which carry payment protection.
David Bewsey, Edinburgh
When I got finance for my car, the salesman completely mis-sold me both PPI and GAP Insurance. I thought it covered both me and my partner, but when my partner lost his job we tried to make a claim and we were told that it only covered me as the policy lead, even though we had both had to sign the policy document. We are really trying to get out of it because it is adding a further £1800 onto an already large bill. These companies are scandalous.
Amanda Scarr, Darlington
The comments we publish are not necessarily the views of the BBC but will reflect the balance of views we have received. It is helpful if contributors state if they work for any organisation relevant to an issue discussed. Readers should form their own views on whether messages published represent undeclared interests, or views prompted by a common source.