WYRE Forest people who take out costly payment protection insurance cover are frequently getting a bad deal, according to the Citizens Advice Bureau.

A survey carried out by CAB has highlighted allegations of extortionate costs of such cover and dubious sales tactics used by banks, loan and credit companies.

Evidence suggests that companies can net vast sums of money through the sale of PPI policies on loans and credit cards.

Borrowers buying PPI policies from major financial institutions have to pay between £10 and £20 per £100 insured.

"But with a successful claim taking an average of three months to process and with only one in 100 claims being successful, these policies appear not to be very good value for money," said Wyre Forest CAB manager, Kate Bennett, adding:

"The amount of money to be paid back in relation to the original amount of money borrowed in many cases is extortionate," she added.

CAB claims that high selling targets often lead to policies being mis-sold, often because borrowers are not eligible for cover, due to the type of work they do, their medical history, or their own personal details do not fit the criteria required by the policy.

Reasons for insurers rejecting the claims include common exclusion clauses such as age, self-employment, medical conditions, mental health problems and the lack of evidence of medical conditions.

The survey revealed that many clients found they were unable to claim because of their circumstances, such as relationship breakdowns, the inability to provide the required proof of changes when experiencing a drop in income resulting in not being able to meet repayments and the need to make a claim.

CAB is pressing companies to exercise a duty of care when selling these products to ensure they are not misleading and inappropriate and to ensure that the terms and conditions are clearly explained.

Wyre Forest CAB, in New Road, is open from 10am until 4pm on Mondays and Thursdays and from 10am until 1pm on Wednesdays and Fridays.

Outreach sessions are held at Bewdley Medical Centre, Dog Lane on Fridays from 2pm until 4pm and in Stourport at the Indoor Market in Lombard Street on Tuesdays from 10am until 2pm.

The telephone advice line is 01562 823953 and further information is available from www.wyreforestcab.org.uk