Are all PPI Sales Fraudulent?
With all the negative hype about PPI people may think that they should never consider PPI and anyone who tries to sell it to them should be reported for fraud. This is not the case.
Some PPI is justified and some is not. Salesmen are now far more careful about making sure that people are aware of what they are paying or and what it will do for them. With any insurance you are taking a risk as you may never need to make a claim. People like to have insurance to give them peace of mind and feel that they would not cope in certain situations without it. Whether you have insurance is up to you though. You may have some already and think it is good or feel it is a waste of time, it is all down to personal preference.
Payment protection insurance will pay out of you cannot make your loan repayments due to a lack of income. This could be from losing your job, illness or even death. You may decide that there is a big risk there and you would like insurance or you may feel that there is a little chance you will not be able to pay it or that you have savings or a spouses income to fall back on in that situation.
Where PPI sales are bad is when you are pushed in to it. In the past people had PPI included in loans without even knowing they were there and others were told they had no choice but to take them out. This is fraudulent salesmanship. There were also cases where people were paying for cover if they lost their job, when they did not have a job in the first place.
Looking at these cases just shows how important it is to be aware of exactly what you are signing up to. It is still possible to be conned, but if you understand about the terms of the financial deal you are making and you discuss it all with the salesman then you should find you get a sale that suits you.
So in answer to the question, not all PPI sales are fraudulent. In fact these days salesmen are very aware that they need to be careful because their customers understand that misspelling is a big problem and are willing to do something about it, if it happens. In the past this was not the case and so past PPI sales were more likely to be fraudulent, although not all of them were.