PPI complaint tool for unsecured loan customers - Loans - News - Moneyfacts


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

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 It is now over 6 months old so the content may be out of date.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

Compare the best loans on the market using our Loans Best Buy charts.

Use our loan calculator to help you search and compare the cheapest loans to save you money.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…

Competition returns to loans, but stalls in cards

Our recent figures reveal a mixed picture in terms of unsecured lending, as while competition appears to have returned to the loans market, it’s notably slowed in the credit card sector.

How to improve your credit score

Are you thinking about applying for credit? If so, you need to make sure your credit score is in order.