Loan Insurance - Competition Commission steps in

temi

Premium Member
Apr 28, 2008
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London
www.temi.co.uk
Banks and other lenders face severe restrictions on their sales of lucrative loan insurance.
Payment protection insurance (PPI) cost borrowers more than £4bn in 2007 and is supposed to repay borrowers' loans if they fall ill or lose their jobs.
The Competition Commission says lenders will no longer be able to sell PPI when they grant a loan, and also for seven days afterwards.
The Commission said customers would have "lower prices and better choice"
- source: bbc.

I think this is a very good idea.
 
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grahamketty

New Member
Mar 19, 2009
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www.trident-insurance.co.uk
Banks and other lenders face severe restrictions on their sales of lucrative loan insurance.
Payment protection insurance (PPI) cost borrowers more than £4bn in 2007 and is supposed to repay borrowers' loans if they fall ill or lose their jobs.
The Competition Commission says lenders will no longer be able to sell PPI when they grant a loan, and also for seven days afterwards.
The Commission said customers would have "lower prices and better choice"
- source: bbc.

I think this is a very good idea.
hi,

Definitely it is a very good decision taken by the commission which is fetching for the customers. It would definitely provoke the needy people to take loans at lower prices...
 

GlasgowGirl

Facilitator
Jul 22, 2008
287
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Hopefully this will lead to fewer people being persuaded to take out this sort of protection when it's not appropriate. It can be very difficult to say no to - after all, who wants to risk losing your house or wrecking your credit record if you can't pay your debts? But people often don't read the small print and therefore don't realise that there are many situations where they won't be covered by their insurance.