Life Credit Cards

Posts Tagged ‘Payment Protection Insurance’

If you have taken out a financial product in the last ten years such as a mortgage, personal loan or credit it is almost certain that you were sold payment protection insurance from your lender. PPI ideally covers your ability to repay your debt should you find yourself in difficult circumstances such as injured or unemployed, however, the lenders found a loophole and have been selling PPI to customers who were not eligible for the cover or who did not fit the particulars of the PPI they were sold.

By doing this, banks have raked in over 3bn and avoided making any payouts to people who did require the insurance. Although they were acting on an obscure technicality they have been deemed to be breaching the law and have faced backlash from the watchdogs. Some large banks have faced fines of up to 7m as well as the money they stand to lose from refunds.

A really unhealthy credit score can bring about one giant headache and shatter a lot of people’s dreams overnight, preventing them from carrying out important financial functions like securing loans, negotiating for lower interest rates or having credits approved.

A credit score that dives below 620 / 850 in the FICO (Fair Isaac Corp.) scale can spell bad times ahead and will put restrictions on a lot of your credit-related transactions. It can set your credit limit to very low values, slap higher interest rates on your credit cards, make it real hard for you to get a loan, and other pesky annoyances that will make your life miserable. Because of this, you should understand that it doesn’t pay to ignore your old debts that have piled up.