Most insurance companies will do their best to answer your complaints. But if they are unable to resolve your dispute,contact the financial ombudsman service. by clicking here for Postal and email address.plus telephone and fax number. http://www.financial-ombudsman.org.uk/contact/index.html

 UK Payment Protection Insurance
By [http://ezinearticles.com/?expert=Stuart_Laing]Stuart Laing

When you took out your mortgage, personal loan or applied for your credit card, did you pay extra for payment protection insurance? Because if you did, there's a chance that this expensive form of protection could be worthless if you ever need to make a claim under the policy.

The idea behind payment protection insurance (PPI) (also known as unemployment insurance) is simple. It's mean to pay out in order to cover the payments on your loans if you experience a sudden drop in income, such as losing your job.

Great!

Except in practice it doesn't work like that. The Office of Fair Trading (OFT) has launched an investigation into payment protection insurance after the Citizens advice bureau discovered that 85% of their clients' PPI claims had been refused by the provider.

In the UK alone, PPI premiums amount to £5.4billion a year. And from that figure, the insurers only pay out just over £1billion. That leaves them with over £4billion pure profit. No wonder they're so keen to make sure that you're "protected".

The main problem is the greed of insurance companies. They're so keen to squeeze every drop of profit out of their customers that payment protection insurance is sold to anyone who can be persuaded to pay for it. Even if it's unsuitable for their circumstances.

In many cases, lenders will sell this insurance to any borrower, without checking to see if their customer is eligible for the cover. And when their customer has reason to make a claim, the majority will be rejected because their circumstances are specifically excluded in the small print.

For example, contract workers, part time workers, the self-employed and those who stop work voluntarily are likely to be excluded.

It's also common for policies to exclude certain age limits, people who had pre-existing medical conditions when the policy began, people who cause their own injuries, stress, depression, bad back and complications from cosmetic surgery.

PPI policies are also likely to be cancelled if the insurance company decides that you knew you were ill or likely to lose your job when you applied for the insurance cover.

And if all that doesn't make it hard enough to make a claim, some policies have to be in force for a certain number of months before a claim can be made. And even if you are successful with your claim, it may take months for the money to arrive and it won't reduce your original debt, just the interest on it. And then, just when you thought it couldn't get any worse, most policies will only cover your monthly repayments for 12 months.

1) Know the score

Payment protection insurance is not compulsory, although many lenders hint that it is by automatically adding PPI to the quote they give you. But you don't have to take PPI to get the loan. And if your lender puts pressure on you to take the cover, look elsewhere for your loan.

2) Avoid PPI

If your circumstances don't meet the terms of the policy, or you can't find a good quote, it might be better to avoid PPI and use the money that it would otherwise have cost you to build up a safety net of cash for emergencies. If you build up the equivalent of six months' loan repayments, it should be enough to give you some breathing space in the event that your income drops suddenly. And, if that doesn't happen, the money is still under your control instead of swelling the profits of the insurance companies.

3) Go Independent

PPI can be a useful form of protection in certain circumstances, but it's vital that you check the terms and conditions closely. Read the small print of your loan agreement to make sure that you aren't paying extra for it. If necessary, look for an independent company to provide you with PPI because your lender will charge you much, much more.

For example, if you wanted a PPI policy to cover a personal loan repaid over 5 years, the premiums charged by your lender could cost you 20-40% of the amount borrowed. So in order to cover £20000 of debt, PPI could cost you anything between £4000 (£66 per month extra) and £8000 (£133 per month extra) over the life of the loan. In fact, one of the worst cases reported was someone who had a loan for £72000 and £44000 of that was for PPI.

So if you still want PPI try an independent insurance company such as British Protection, Free Insurance or Paymentcare. Typical costs should be approximately 4-6% of the amount covered.

by Stuart Laing

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EXTENDED WARRANTIES.

Way back in the nineties I purchased a washing machine from a well known high street retailer. When  extended warranties were first introduced I thought, what a great idea, as most of the washing machines I had purchased in the past had regularly broken  down. But now for  a one off payment my wife and I could enjoy peace of mind and no repair bills for five years, WRONG. The washing machine I purchased worked perfectly for four years and eleven months. When it suddenly refused to start. This did not concern me at the time, as I thought rather smugly to myself, good job I chose that extended warranty.WRONG AGAIN.

Here is what happened. I phoned the company to inform them my washing machine had broken down ,they replied "no problem, we will send a repair man out in the morning".He arrived inspected the machine and informed me "he could not repair it,as the part he needed had to come from Japan" (yes that old chestnut).So we waited  and waited a few weeks, still no reply,so I decided to ring again. This time they replied "sorry the part for your machine has not arrived". I phoned again a few more times, still no spare part, I phoned again, this time they did have news, but it was not good news.the lady on the other end of the line informed me "my warranty had expired, and the five years were up. and I could not claim a penny".To which I replied, "but it was under the five years when it broke down"."oh in that case we can offer you the price of the washing machine", "mmm o.k". I said, I will just have to accept that then,  "I will send your cheque out tomorrow morning" she retorted before putting the phone down.

A few days later my cheque arrived, for the paltry sum of thirty pounds. By now I was very angry, so I phoned again asking them "why the sum was only thirty pounds", "didnt you read your contract sir, each year the value of your washing machine is worth less and less,with depreciation,  and that is all you are entitled to", she replied rather patronisingly.  "but I thought even if I did not get  a replacement. it would at least be repaired ",I retorted.  "But you should have read the contract sir " she replied wearily.

Well in hindsight I have to admit she was right, I should have read the contract. and not listened to the salesman who assured me "if the machine broke down, it would either be replaced or repaired". If I had  read the small print  my wife and I would not have spent six winter weeks  surrounded by soaking wet washing.with my blood pressure going into the stratosphere.

So the moral to the story is ALWAYS  READ THE SMALL PRINT. And when a salesperson smiles sweetly and says  "just sign here. oh dont bother about that stuff on the back of the form sir, its just standard terms and conditions, its nothing to worry about". Just say NO. Because if you do, I promise you, you will be saving yourself a hell of a  lot of hassle.

click on link for latest news on extended warranties  http://business.scotsman.com/warrantyrow/Watchdog-backs-concern-over-ripoff.2406734.jp

 MORE  EXTENDED WARRANTY WOES

 Even before the the washing machine saga I purchased a video recorder from another well known high street store. and foolishly bought a similiar type of insurance product.this promised to repair the machine free of charge with no call out or labour fees.

Well I had no complaints this time, as every time  I had a fault they would unfailingly turn out to repair it. And it was a good job they did, as  videotapes got stuck inside  my video recorder quite regularly.and this guy would turn up and swear that he had fixed it this time for good.but after his sixth visit my patience was wearing rather thin, as every time my tapes got jammed inside the video recorder, when he pulled them out, they had unravelled and were useless. And in those days videotapes were quite expensive. hard to believe I know,as your local charity shop cannot even give them away today. 

So when the tape got jammed again inside the video recorder I phoned again for him to come out and repair it.but this time they  sent a different repairman. when I enquired where the other bloke was.he replied ."he has gone away for his annual two weeks holiday". I explained about the fault and how it was unrepairable. he then examined it for a few minutes, and exclaimed "I think  I know what the problem is,it will only take a few minutes to fix".So  a few minutes later when he handed me another mangled tape back.He promised me"thats fixed the problem for good. Yeah right I thought. see you or your mate next week.

Well surprise surprise he was  right, and I never had any trouble with it again until it finally gave up the ghost about four years later.

I dont know what the moral to this story is, maybe train your employees better ?.