Descrption:
The top ten problems with the Payment Protection Insurance(PPI) market have been identified by an independent personal finance website.
Research by comparison site moneyfacts.co.uk puts price issues with payment protection insurance (PPI) at the top of its list.
The price of PPI for a loan of £5,000 over three years can vary by up to £800 between providers, and confusion over the levels of cover offered by different deals was in the top ten list.
Lisa Taylor of moneyfacts.co.uk said: "The actual level of cover is not easily comparable. Many lenders now offer a range of cover, using different terminology and don’t all promote the same features."
Another important issue in the list was the sales process. The site said it was wrong for customers to be quoted figures that include the protection fee, forcing them to opt out rather than choose PPI, with many consumers not aware of the insurance as a stand alone product.
This is made worse by recent statistics that showed 27 per cent of consumers had thought buying PPI would help get the loan agreed.
Other key problems in the top ten included terms and conditions being too complicated, poor value for money due to the payment protection market's low claim rate, and policies that leave consumers at risk by covering just one party.
Ms Taylor concluded: "While the cover that PPI provides can prove invaluable in some instances, consumers should think about the consequences of income changes on their ability to repay borrowing.
Moneyfacts
Claiming Back PPI Fees
posted by Your Friends @ Myvesta.org.uk # 10:12 PM
24 August 2006
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