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PPI complaint tool for unsecured loan customers

PPI complaint tool for unsecured loan customers

Category: Loans

Updated: 27/08/2010
First Published: 16/03/2009

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 It is now over 6 months old so the content may be out of date.

Consumers who feel they have been mis-sold payment protection insurance (PPI) have been offered a new means to redress the problem.

PPI is often offered alongside unsecured loans in order to protect against the possibility that a borrower becomes unable to repay.

However, the process by which polices are sold has come under scrutiny in recent months and consumer campaign group Which? is launching a new service as a result.

The online tool allows borrowers to enter the name of their provider and answer questions about why they think their policy was mis-sold, before creating a letter that can be sent to the company.

Which? has noted that PPI could add between £2,000 and £3,000 on to the cost of an unsecured loan worth £7,500 over five years, while policies covering credit cards may only apply to the minimum payment amount.

The company recently suggested that income protection is a better option for those with unsecured loans, as it also covers mortgages and other debts.


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