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

'Take advice before PPI'

By Sarah Engle, Fri 19 Sep 2008 - Published in Loans

Customers should seek advice before taking out insurance on any of their financial products, it has been claimed.

Lucy Widenka, personal finance campaigner for Which?, said that payment protection insurance (PPI), which is taken out on products such as loans and mortgages, may not be the wisest idea in the current economic climate.

She advised people to seek financial advice when making calculations over their debts and said it may be more prudent to protect them all, rather than just one product.

Ms Widenka added: "If money is tight, you would be better off using money you would have used on credit card PPI and spending it on independent financial advice and more robust protection for your entire finances."

Last year, the Financial Services Authority said that many companies selling PPI were falling short of its treating customers fairly initiative, citing not explaining the product clearly and not ensuring it is suitable for the customers as examples of poor practice.