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Insurance for unsecured loans 'not comprehensive'

Insurance for unsecured loans 'not comprehensive'

Category: Loans

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

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.

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