Five of UKs largest banks stop selling loan insurance
20/01/09
A decision has been made by some of the UKs largest banks to stop selling loan insurance, otherwise known as payments protection insurance (PPI) if customers purchase it with a single payment.
Five of the UKs largest banks including Barclays, Co-Operative and Alliance & Leicester have decision to do this. PPI insurance is usually sold with unsecured loans and as many will be aware, can add a substantial amount of money onto the cost of the loan.
Citizens Advice commented that, “These premiums are very expensive and can add substantially to the cost of a loan, often increasing people's debts instead of protecting them against hard times.”
“These firms have recognised that the party is over for single premium PPI and the rest should follow suit,” commented head of campaigns Louise Hanson at Which?
“PPI has been widely mis-sold in the past so anyone with a personal loan should check if they have a single premium policy as they could claim their money back,” she continued.
