Finance & Investment Insurance Consumers 'tricked' into buying PPI with personal loans
If you've taken out a personal loan, Payment Protection Insurance (PPI) can be an excellent investment. PPI will cover your debt repayments in the event that you're sick, suffer an accident or if you experience unexpected unemployment - and this could ultimately make a crucial difference to your long-term financial well being.
However, a recent study by consumer group "Which?" has found that many consumers could be at risk of unknowingly purchasing PPI when taking out a personal loan over the phone or via the internet. The research conducted by "Which?" found that more than half the number of personal quotes received on the telephone automatically included PPI, with a similar pattern emerging online. Out of all the banks surveyed, only one site made it clear to their customers that they could choose a personal loan with or without PPI before giving them a quote.
While PPI can provide a number of benefits to consumers with personal loans, it's important for borrowers to realise that it might not always be right for them. "Which? Money" Editor, Martyn Hocking, commented:
"PPI is not always suitable, yet our research shows that lenders are still extremely keen to sell it to us. By adding PPI to loan quotes automatically, people could be tricked into buying it regardless of whether they need it or not."
He added, "If you're taking out a loan, make sure you know if the quotes you get include PPI - it's not compulsory so if you don't want it, ask the lender to remove it."
If you're hoping to take out a personal loan, don't let the threat of being tricked into buying PPI put you off shopping for loans online. There are a number of consumer comparison sites that will let you compare loans online. Through these sites, you'll be able to conduct your own personal loan search and evaluate which is the right one for your particular financial circumstances.
Moreover, you'll be able to establish which banks and financial institutions offer the best rates on PPI across the UK market; so if you're specifically looking for comprehensive payment protection insurance, you'll be able to establish how to go about acquiring the best cover for your personal loan. You can find information about PPI and the benefits it offers from a variety of online resources, including such bodies as the Financial Services Authority (www.fsa.gov.uk) and the Association of British Insurers (www.abi.org.uk). The more knowledge you have about PPI, the better equipped you'll be to assess whether you actually need it!
Related Tags: loans, personal loans, ppi, cheap loans, uk loans, compare loans
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Motor Trade Rundown
It is not just cars that must be insured on British roads, every type of motor vehicle is required b - Claiming Compensation For Defective Products
Compensation claims for injury and damage caused by faulty, defective products normally target eithe - Ideas To Uncover Affordable Rate Auto Coverage
These days, everyone is looking for ways to lower expenses. Certain costs like home and car insuranc - Should It Be Illegal For People To Drive Without Vehicle Insurance?
There are many drivers on the road who drive un-roadworthy vehicles. The worst part is not that they - Do You Need Static Caravan Insurance?
Static caravan insurance is an automobile insurance that deals with vehicles that are used while on - Insurance - Tool For Personal Finance Planning
Financial planning is must for every individual. When we start saving money for our goals, there is - Family Life Insurance Policy For The Families Staying In Dubai
The main motive of insurance policy is to give financial security to the person's family especially - Buying Temporary Health Insurance In Florida
You are the resident of Florida? You are between jobs and therefore are not looking for a long term - Car Insurance Is Of The Utmost Importance In Today's Lifestyle
In today's hectic lifestyle we are always rushing to get from one place to another, whether it be ru - Health Insurance Companies Are Using New Laws As An Excuse To Raise Their Rates
Government officials are cautioning insurance companies to stop utilizing scare tactics to steam up
Most viewed articles in this category:
- International Health Insurance: Insure Yourself While in Go
We all will agree that whether we are living in our home country or abroad, our health needs constan - It's Never Too Early to Buy a Long Term Care Health Insurance!
Most people delay buying a long term care health insurance because they think that it is too early t - Home Owner Insurance Quote: Stay Safe!
Your house will not be fully secured until and unless you have a home owner insurance policy. A home - The Benefits of Health Insurance Are Immense!
Almost everyone in this world has fallen ill sometime or the other. Apart from illness, many people - What Happens When You Make An Insurance Claim?
If you've never filed a loss claim before, you might feel nervous and confused about the whole proce - Pet Health Care Insurance: Show your Pets That you Care!
Having a pet in one's household is a joyful experience. It can provide you with entertainment, compa - Three Ways to Buy Long Term Care Without Paying Premiums Out of your Pocket
Stop 100 people over 65 on the street and ask them if they will ever need to go to a nursing home an - Protect That Bauble: Engagement Ring Insurance
Engagement ring insurance can protect your bauble in case a worst case scenario happens...So you've - Do I Need Diamond Ring Insurance
If you have to ask whether or not you need diamond ring insurance you probably do. There's somethin - Choosing a Benefits TPA
The use of third-party administrators (TPAs) is one of the hottest trends in insurance today. Accor