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Single premium PPI 'should be banned'

Single premium PPI 'should be banned'

Category: Loans

Updated: 04/12/2009
First Published: 27/01/2009

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 It is now over 6 months old so the content may be out of date.

Consumer campaign group Which? has called for a complete ban on the sale of single premium payment protection insurance (PPI).

The body has stated that the decision by a number of products to stop offering the product is welcome, but others may not follow the example.

PPI is often sold alongside unsecured loans to act as protection against the possibility that a borrower becomes unable to repay, but the single premium option adds the cost of the insurance on to the loan itself, adding to interest charges.

Personal finance campaigner at Which? Lucy Widenka urged those with policies to check how it was sold, as they may able to reclaim unfair charges.

She added: "There are still other firms who won't voluntarily do it so the Competition Commission, who are looking at this issue at the moment, should ban the sale of single premium PPI."

Alliance & Leicester, Barclays, Co-operative Financial Services (CFS), Lloyds TSB, Halifax, NatWest and the Royal Bank of Scotland will all stop offering the policies at the end of this month.

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 Any products featured may be withdrawn by their provider or changed at any time.

 
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