'Bad credit loans' attached to PPI
'Bad credit loans' attached to PPI
Thursday 2nd October 2008
Data from Which? indicates that 1.3 million people wrongly believe that payment protection insurance (PPI) will help their credit card applications.
Nearly ten million consumers in the UK currently own credit cards attached to PPI, which is sold alongside other loans and finance agreements to cover repayments in case of illness or unemployment.
"No one should have to take out PPI on their credit card," according to Doug Taylor, a Which? personal finance campaigner.
He said: "In this time of economic uncertainty, people are effectively throwing away £970 million each year, when they should be encouraged to seek independent financial advice about protecting their finances as a whole.
"Credit card PPI is the elephant in the room that can no longer be ignored."
Research conducted by the Competition Commission in June found on average only 11 per cent of PPI claims are successful.
UK consumers currently spend a total of £970 million on PPI per year, with each policy costing an average of £127.60.
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