Insurance for unsecured loans 'not comprehensive' - Loans - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Insurance for unsecured loans 'not comprehensive'

Insurance for unsecured loans 'not comprehensive'

Category: Loans

Updated: 29/01/2009
First Published: 29/01/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Not all borrowers who have taken out single premium payment protection insurance (PPI) will be able to make claims, it has been noted.

Consumer campaign group Which? has noted that medical exclusions are often contained within policies, while in many instances self-employed people do not qualify.

Such protection has come under scrutiny from the Competition Commission, which has imposed penalties on firms that have mis-sold products.

Personal finance campaigner at Which? Lucy Widenka remarked: "The customers weren't necessarily told that it was optional and some of the fines referred to staff putting pressure on the customers when they actually queried the inclusion of the PPI."

She warned that single premium policies are added onto the cost of the unsecured loan, meaning interest is being paid on the protection even after it has expired.

Claims on all PPI policies rose by nearly 120 per cent in November, according to findings from the Association of British Insurers.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Blue Monday hits nation’s finances

Today has been dubbed Blue Monday – the most depressing day of the year – and considering how many people could be battling with their finances this month, it’s little wonder.

Calls to make the loans market clearer

At first glance the personal loans market may seem simple enough, but get into the nitty gritty and it can be anything but. As a result, some are calling for action to make the market clearer and fairer for all.

Get the cheapest ever personal loan!

Have you woken up with a financial hangover after the festivities? Perhaps you’ve got big plans for the year ahead, or maybe you need a new car? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate!