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Payment Protection Insurance.

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  • 11-12-2008 1:04pm
    #1
    Clarice
    Closed Accounts Posts: 35 ✭


    I never used to bother with Payment Protection however now I'm wondering if I should. I switched jobs in March and with the way things are going I don't know if my job is 100% secure or not - like a lot of people I suppose!

    The payment protection for the 30 month loan is around €2,400. I wasn't expecting it to be this much, around €80 a month.

    Now I'm torn as to taking out the PPI to be on the safe side, using the €80 a month towards paying off the loan earlier, or putting it towards a rainy day / emergency savings account.

    Are there any companies you can go to directly about PPI or is it just through the lender?

    Thanks.


Comments

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    #2
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    I dont know about PPI companies, but do be careful to read the small print as they often dont cover redundancy


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    #3
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    You would be crazy to pay 80 euro a month protection. That would be 2400 in total over the 30 months - same amount as you are borrowing.
    Don't do it.


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    #4
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    A stat I read in the SBP a few years ago was that 96% of all PPI claims are rejected. It is nothing but a scam.

    A taxi driver had to go to the High Court in order to get one company to pay up.

    Don't do it. If the worst happens, tell your loan provider immediately and they will be happy to take into account your changed circumstances and will come to a workable arrangement until you find employment again.


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    #5
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    kaiser sauze wrote: »
    A stat I read in the SBP a few years ago was that 96% of all PPI claims are rejected. It is nothing but a scam.

    A taxi driver had to go to the High Court in order to get one company to pay up.

    Don't do it. If the worst happens, tell you loan provider immediately and they will be happy to take into account your changed circumstances and will come to a workable arrangement until you find employment again.

    I've never heard of a rejection rate that high.

    It can be difficult to get a claim through, most of the time its not your fault. There are 3 people involved in making a claim. You, social welfare and the company that let you go. So needless to say its important that these 3 things work together to make teh claim go as smooth as possible.

    Some people do not want to ask there old employer to fill in the forms. Some old employers will not fill them in. There are countless reasons for this.

    Also, if you have any idea about loosing your job, your not going to be covered if you make a claim and have prior knowledge.

    Lastly, most PPI schemes have a wavier period of between 60-120 days, so if you get let go within that time frames your not going to be covered either.

    Read the T&C's of the PPI scheme and make up your mind on it then.


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    #6
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    unclebill98 wrote: »
    I've never heard of a rejection rate that high.

    I might still have the article; if I come across it I'll post up scans.


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    #7
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    kaiser sauze wrote: »
    I might still have the article; if I come across it I'll post up scans.

    Please do.


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    #8
    IsThatSo?
    Closed Accounts Posts: 988 ✭✭✭IsThatSo?


    I personally do not believe that PPI is worth it, but each to their own.

    As another poster said, if you run into difficulty you can reschedule the loan. Its always your best bet to let your bank know immediately if you think you may have repayment problems, it saves them time and money chasing you for funds, and saves you bad credit history:)

    PPI will usually (but can't swear to this) cover payments for a specific period of time so its not open ended. This could depend on the policy purchased of course.


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    #9
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    IsThatSo? wrote: »
    I personally do not believe that PPI is worth it, but each to their own.

    As another poster said, if you run into difficulty you can reschedule the loan. Its always your best bet to let your bank know immediately if you think you may have repayment problems, it saves them time and money chasing you for funds, and saves you bad credit history:)

    PPI will usually (but can't swear to this) cover payments for a specific period of time so its not open ended. This could depend on the policy purchased of course.

    true, Banks are not the big meany people make them out to be :eek:
    There more than happy to arrange something, after all you going to make sure they get there funds back in the long term.

    PPI covers 12 months payments as standard, you may get something better, but thats normally a seperate policy, like income protection.


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    #10
    CSC
    Closed Accounts Posts: 653 ✭✭✭CSC


    I have worked in collection departments of financial institutions and I have seen the benefits of Payment Protection to customers who thought they would never be made redundant or be off work due to sickness. Have a read through all the policy documents and then you will be able to make an informed decision.


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