19 July 2005
Loan protection insurance is under scrutiny again, with accusations of illegal and immoral sales methods being levelled at some areas of the industry.
Also known as payment protection insurance (PPI), this form of cover is supposed to provide some security for consumers who cannot work for one reason or another, and is important for those who have taken out loans, as they will still need the wherewithall to make the repayments.
Radio 4 has made a programme underlining how banks and building societies can push their policies onto customers and providing them with a "safety net full of dangerously large holes".
According to This is Money, one part of the show sees a researcher pose as a potential customer at several banks and building societies, and found that the majority included the PPI with any loan, while failing to reveal the particulars of their policy and what it did and did not cover.
Calls have been made by the Financial Mail, as well as others, for the rules to be changed.
Compare all UK personal loans at uSwitch.com comparison service and find the one to suit your needs.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.