Call it Karma, Just Deserts or Long Over-Due, but finally payment protection insurers have felt the wrath of the chairman of the Financial Services Authority (FSA), Lord Turner, for hiking prices and reducing cover. About time.

At a time when the likelihood of unemployment-related claims is greater than ever, credit providers are happy to move the goal-posts and charge policy holders more for less cover. It’s pretty shocking that insurers, who have the trust of millions of people, can turn around and so blatantly disrespect the best interests of their paying customers.

A couple of months back we wrote about these rising costs and even now, we’re still seeing insurers restrict cover and hike prices. But given that insurance is the delivery of a promise and policies are sold on the basis of that promise, there could be plenty of ppi claims in the pipeline as people try and get their money back.

More Unemployment Means More PPI Claims

More and more people will need their PPI policy to support them over the coming year with the Association of British Insurers (ABI) reporting that PPI unemployment claims are soaring. In fact, claims at the end of January reached 32,099, which represents a 203% increase on the previous year.

In his speech, Lord Turner asked: “How many consumers would have taken up this cover if they had known that at the very time they needed the protection more, the price of it would significantly increase or the amount of cover decrease? This is an area where insurers must expect us to intervene to address poor consumer outcomes.”

Basically, you keep shafting customers and we’ll be on your case – which is great to hear. Because as a victim of mis sold or unfair insurance, you can make PPI claims and now that the insurers are getting it in both ears, they’ll be more inclined to pay back what’s owed.