Payment Protection Insurance from HSBC
The insurance industry is the fastest growing one in the world today. People want to insure their property and themselves against a host of risks that exist. Among the most common forms of insurance include car, medical and life insurance covers. There are many more insurance policies available for people to take up and among this is the increasingly popular payment protection insurance commonly known by its abbreviation PPI. The HSBC PPI cover was at the top for quite a long time before the institution stopped selling the insurance. The bank’s goal has always been to provide its clients with the best kind of service.
What exactly is PPI?
Payment Protection Insurance (PPI) provides coverage for the monthly repayments of loans that one might take. Taking up a loan is a good thing because it will help to acquire that thing which is so much needed. Nevertheless things can happen and one is unable to make their monthly payment of the loan for one reason or another. In this day and era when one can be laid off from work without notice or have an accident at any moment insurance is the way to go.
With the PPI, whether one suffers an accident or funds run out and is unable to make their monthly repayment for their loan the cover protects them. Before the HSBC PPI cover was discontinued from the market, there were some five main products on offer. These included protection plants for personal loans as well as mortgage repayment protection. These are among the most common loans nowadays. People take personal loans to pay for education or seek medical assistance. Mortgages are also flying off the shelves because people want homes for their families.
For one to take up a loan money must be flowing in at quite a slow rate but there is the assurance that they will get the money to repay the money over a given period of time. But what happens when this assurance is taken away? The stress that comes with repayment of loans without any surety that money will be flowing in for this purpose can kill a person quite easily. Hence the PPI covers.
Discontinued PPI coverage
The HSBC PPI policies were cut off from the market in the December of 2007 when the company stopped selling the covers. It has been caught by the media and regulatory bodies that PPI products are being mis-sold whenever customers take out loans, mortgages or credit cards. In that light, the Financial Conduct Authority (FCA) set out rules concerning how the firms should handle PPI complaints. HSBC is one of the firms that were first to adopt the guidelines.
Anyone with a complaint is encouraged to get in touch with HSBC directly and their case will be handled. There are those people who seek out the services of a claims management company but HSBC insists that this is not necessary. The institution assures all claimants that they will have their case sorted out within a period not extending over eight weeks.