Would you believe the reputation of payment protection insurance (PPI) could sink any lower? Well it has as the cost of the already controversial PPI is at an all time high due to soaring unemployment.

British Insurance has put its premiums up by 170 per cent in the past year. The Post Office has repriced its PPI product and reduced the level of coverage it offers, and other insurers are expected to follow suit as increasing numbers of people claim on the insurance.

The changes to the Post Office product will affect existing as well as new customers, as insurers are allowed to change the terms of the policies as long as they give consumers 30 days notice.

The maximum amount of cover people can have under the group’s lifestyle protection product will fall from £2,500 a month if they are unable to work due to an accident or illness or if they lose their job, to £1,500. People will also have to wait for 90 days after they have stopped working before they receive any money, compared with a previous 30 day waiting period.

Further more Those considered to be at high risk of unemloyment or illness could see their premiums soar to as much as £7.35 per £100.

Just a short one today, there’s talk that Payment Protection Insurance (PPI) claims could cripple the banks as they have no money. This is a point we beg to differ on, in fact to see just how much money UK banks have available to them, take a look at this BBC article: http://budurl.com/bankcharges.

It shows in detail what the most powerful Governments in the world are pumping into their economies to keep them alive. You should see how much taxpayers hard-earned is being used in the UK, eye-watering doesn’t quite cut it.

When it comes to claiming back unfair Payment Protection Insurance (PPI) charges, there’s one thing you can guarantee your banks and lenders will do – drag their feet. In fact, some are so good at it, they may even have a textbook all about the best stalling tactics when it comes to paying out.

For us, it’s not a problem because we know how to manage the banks and make sure client claims are handled as quickly as possible. But for the individual who’s claiming their PPI payments back on their own, these tactics can have serious consequences.

Now, as usual, there’s a few high profile offenders when it comes to seemingly holding back or turning down mis-selling claims, these are: RBS, Northern Rock and Lloyds TSB. Recent figures showed that in most cases, most banks will pay out within six months, but customers of this trio generally have to wait over 12 months.

There’s around 35m PPI policies held in the UK and many of these are believed to have been mis-sold. With this in mind; RBS, Lloyds TSB and State-backed Northern Rock need to seriously consider playing ball and speeding up the process; because they’ll no doubt be seeing a lot more completed PPI claim forms coming through the H.O. letter box.

Mention Payment Protection Insurance (PPI) to 20 million people (best use a loudspeaker) in the UK and you’ll see a cringe, a possible eye flicker and probably a grimice as they recall how much money they’ve been taken for.

Despite this, some major players in the UK car industry believe they can re-invent PPI’s negative image and use it as a add-on to make sure they get the sale. Renault, Honda, Nissan, Volvo, and General Motors are now offering free PPI with the sale of certain models and more manufacturers are expected to follow suit.

How strange that PPI, the three letters that have become synonymous with bad practice resulting in many a PPI claim, is now being used as a ‘unique selling point’.

Now, as we all know, ‘free’ doesn’t always mean ‘free’ and there’s bound to be clauses so if you’re looking into it, make sure you get hold of and read all the details. And don’t worry, we’ll be keeping an eye on them for you as well.

Now, as I understood it; Insurance is designed to ensure that something lost or damaged is covered, be it your job, your mobie phone or your car. And for this reassurance and expert service, you pay a premium, fair enough – that’s how the economy ticks over.

So why then, do Payment Protection Insurance (PPI) firms; insist on mis-selling cover, refuse to provide unemployment-only cover and increase their premiums by up to 40%? I mean, come on – consumers are acting responsibly by trying to ensure their bills are paid if they lose their job and PPI insurers are offering inappropriate cover at high prices or none at all.

According to the Association of British Insurers, over 20,000 PPI unemployment claims were received in 2008 – an increase of 200% on 2007. This number will no doubt rise in line with unemployment, resulting in even higher PPI claim numbers, more unsupported customers and more debt.

Media reports say the cost of protecting a typical £750 mortgage repayment has risen from £37.50 to £50 per month, making it harder for people to protect their mortgage payments, secure their home and keep a roof over their heads.

Banks rising prices for financial support – don’t they know there’s a recession on? – I guess you don’t have to worry about these things when you’re getting multi-billion ££££ bail-outs from the tax-payer.