Financial Advisors: Can You Really Trust Them?

Filed in Personal Finance Leave a comment

In the United Kingdom today, life became peachy because of mis sold PPI. Millions of UK citizens are filing for PPI claims to get back all the repayments they’ve made for the faulty insurance. One of the key factors that made the mis selling of almost every UK citizen in the country are the insurance brokers and financial advisors. Through their efforts, many were urged to purchase the insurance. This brings up the question if you can still really trust the financial advisors, brokers and other related professions in the country nowadays?

Well, if you intend to make a PPI claim, here’s what insurance brokers usually mis sell the insurance. An insurance broker mis sells the PPI insurance policy by explaining its benefits to you in a detailed manner especially if you have multiple financing. PPI can provide repayments for up to one year for all customers. Then, logically, they mention that the insurance policy’s benefits increases bank confidence in their application for a new loan. Insurance brokers sometimes omit certain parts of the insurance’s terms and conditions to make a sure sale to their customers.

One of the many things customers should watch out from their insurance brokers or financial advisors is how they are paid. Some are paid by commission, especially sales representatives of such financial products. Those paid by commission are poised to have customers purchase the highest-paying product they have. Like the insurance mis selling, they can use such devious tactics to make a sale for such products you don’t actually need.

These professionals can also work for you on a fixed payment rate or an asset based percentage. You can trust your broker on a fixed payment rate only if he or she is not selling any more financial products and earning commission from such. This is because they can recommend the highest paying products for financial aid.

You can still trust your financial advisors. However, it is clear that the way they are paid for their services affects their motivations in helping customers. It is very important that you understand how they are compensated for their services to understand the level of trust and importance you can give them.

, , , , ,

Taking Care of Your Bank Accounts

Filed in Personal Finance Leave a comment

Having one or two bank accounts is something that can help you maintain your credit rating, that is, if you can manage all these accounts properly. Because of the economic problems in every country, many people are starting to mismanage their bank accounts, leading to overdrafts and serious debts against their bank. Working with your bank account through thick and thin can be rewarding; your credit rating is the basis of financial companies when evaluating your background for any loan application you might have. Here are ways to manage your bank accounts effectively.

1. Know Your Terms and Conditions

One thing most bank customers do after they get cleared for their bank accounts is to use it all at once. After all, how hard is it to use a bank account when you just need to deposit and withdraw money from it? Many people suffer from financial problems nowadays not understanding that some of their charges come from violations they do not know they committed. Reading the fine print is something that one must always do before making use of their bank accounts. This is especially important with customers who have multiple bank accounts.

2. Noting Down Details

Having notes about the current status of your bank accounts is something that can help you save money. People usually mismanage their bank accounts by miscalculating the amount they have withdrawn or have paid with their debit card. As a result, an overdraft will entail extra charges. In some cases, these bank charges can be unfair. But the only way to avoid them is to know the exact amount you have left with your bank accounts. This will help you avoid overdrafting and can help you budget your money more properly.

3. Pay for Bank Charges as Soon as Possible

Always keep tabs on any violations you’ve made against your bank. If you’ve misused your bank account, make sure to pay for the amount the following day or at any time you’re free. Never forget to do this; most customers often forget about the deadline of their penalty fee a few days after they receive the initial billing. Unpaid penalties can result to massive charges every month. This can leave you ‘snowballing’ into huge debt especially if you have multiple bank accounts.

, , ,

Consider Reclaiming Payment Protection Insurance Repayments

Filed in Personal Finance Leave a comment

As mentioned in the earlier articles, saving at a young age and investing in products and services that will benefit you in the future is the key to ensuring your economical prosperity. But in the United Kingdom, mis sold PPI had been reported to be present in almost all existing loans, mortgages and credit cards in the country. Surely, you will not pay for an insurance policy that you know you have no use for. If you have taken out a loan, mortgage or a credit card recently, you might be mis sold PPI.

PPI is actually a beneficial insurance product. However, because of its mis selling, it has become infamous in the entire UK. Many ineligible customers were mis sold PPI because of the abusive sales tactics of bank representatives. Many report that these bank representatives stipulated the insurance as part of a loan security requirement, some mention that the bank representative guarantees the PPI ensured the success of the loan application. Ineligible customers purchased the insurance believing they have heard the complete terms of contract of the insurance.

 

Again, as mentioned in the earlier articles, always learn to read the fine print properly and understand them. If you took a PPI based on the recommendation of your bank representative, you might be mis sold the insurance policy. Always remember what you were told by your bank representative that made you purchase the PPI. Also review the requirements of the PPI; your previous credentials during the time of your purchase might not be compatible with the PPI’s requirements.

PPI requires that its customers are financially stable, in perfect health, employed and within the claiming age during the time of purchase and for a specific period of time before the customer is awarded their benefits. It provides its customers 12 months of loan repayments for any financial hassles. The events of financial hassles PPI covers are extreme illnesses, accident injuries and unemployment during the cover term.

It is advised that people consult with PPI claims experts at the soonest time possible if they believe they were mis sold PPI. Many claims have failed in the past because they lacked the insight of a claims expert. Most claims experts provide consultation for free, so you’ll get all the help you’ll need and you know you won’t be wasting time making a claim. Remember, you might be paying for an insurance policy you do not have any use for, which makes it advisable to consider to reclaim all your repayments and invest these into more suitable and reliable options.

, , , ,

TOP