News Categories

• Banking
• Breakdown Cover
• Car Insurance
• Credit Cards
• Home Insurance
• Insurance
• Life Insurance
• Loans
• Money
• Mortgages
• Pensions
• Pet Insurance
• Travel Insurance

News Archive

• May 2012
• April 2012
• March 2012
• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• June 2011

Newsletter

Borrowers without PPI 'could be vulnerable'

By Sarah Engle, Thu 12 Jun 2008 - Published in Loans

Many people do not think they require payment protection insurance (PPI) when they take out loans, according to the Association of British Insurers.

Kelly Ostler-Coyle, a spokesperson for the organisation, said that if PPI is not offered at the same time as mortgages or loans, borrowers may be left "without valuable protection".

In the Competition Commission's provisional findings on PPI, it was reported that many people are unaware that they can buy PPI from a separate provider to the one they are taking out a loan with and as a result customers are being overcharged by £1.4 billion a year.

Ms Ostler-Coyle said that customers should have a choice when it comes to PPI.

She commented: "It does take time to shop around and some people would like to do that, while other would like the convenience of buying it with the loan."

PPI can provide support if a borrower is suddenly unable to pay their debt, for example if they fall ill or are made redundant.