Anorak News | Insurance Scams On The Increase: PPI

Insurance Scams On The Increase: PPI

by | 2nd, May 2007

AS we now know all too well, banks will do their utmost to squeeze every last penny out of their customers and now consumer group Which? has revealed that consumers are being tricked into buying expensive payment protection insurance (PPI) when taking out a personal loan.

Over half the companies investigated by Which? added PPI automatically to their quotes without informing the customer. Indeed, the latest figures suggest that there are around 20m policies currently active in the UK despite the fact that PPI is often sold to people who don’t need it.

The Office Of Fair Trading claims that only 20% of the total amount claimed for on PPI policies is actually being paid out, compared to 82% in the motor insurance industry.

Martyn Hocking, the editor of Which?, warns us: “If you are taking out a loan, make sure you know if the quotes you get include PPI. It is not compulsory so if you don’t want it ask the lender to remove it.”

Posted: 2nd, May 2007 | In: Money Comment | TrackBack | Permalink