I got an interesting letter in today’s postbag from Which?.
They say “payment protection insurance (PPI) is big business. In October 2006 the OFT estimated there were approximately 20 million policies in force, with between 6.5 million and 7.5 million policies being sold each year. It’s also hugely expensive. Adding PPI to a £7,500 five year loan could cost an additional £3,000. Worryingly, the OFT found that only 20 per cent of PPI premiums are ever paid out on claims – this compares to 82 per cent for car insuracnce and 54 per cent for house insurance.”
No wonder they are mounting a campaign.
1 comment so far ↓
The very aggressive selling of this when you take out a loan should be investigated and stopped. You have to be very determined to get a personal loan without it. And that’s from a supposedly reputable finance house.
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