Defaqto Highlights PPI Necessity as Unemployment Rises

25th March, 2009

As the number of people unemployed in the UK climbs to above two million for the for the first time in 12 years, Defaqto is urging people to consider payment protection insurance (PPI) to safeguard their expenditure.

According to Defaqto, a leading provider of financial research, PPI can help ensure that a household's mortgage payments are protected should a primary income earner lose their job. And since some forecasters are predicting that another million people in Britain will be laid off in the next 18 months, PPI could provide an essential safety net.

Brian Brown, Head of Insight at Defaqto, said:

The call comes shortly after the Financial Ombudsman Service (FOS) revealed that it received more than 800 complaints a week regarding PPI policies, an 'unprecedented' number.

However, according to Mr Brown, while many financial consumers may have been mis-sold PPI and will therefore be in a position to cancel their policy or claim their premium payments back, others will have valid policies that look after their interests fairly.

As a result, homeowners are urged to think carefully before cancelling their PPI solely due to bad press surrounding the insurance product, and to shop around for competitive PPI quotes if they think they are paying too much.

Mr Brown also urged people looking for PPI for the first time to consider their options before taking the plunge. He said: "At the very least people should think about their priorities. For instance there is little point taking PPI cover for your credit card bill or a loan if you haven't first protected your mortgage."

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