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PAYMENT PROTECTION INSURANCE
Research by financial data
specialists Moneyfacts found banks have been ripping off
customers by adding up to a third to the cost of taking
out an unsecured loan with Payment Protection Insurance
(PPI). NatWest topped a table of cover ahead of Abbey and
Lloyds TSB in the study. The research found that
NatWest's policy adds as much as £3,267.60 to the cost
of paying back a five-year £10,000 loan, at £54.46 a
month.
Abbey's £46.10 a month in life, accident, sickness and
unemployment cover would add £2,766 to the same amount
while Lloyds TSB's monthly payment of £45.51 would add
£2,339.10 to the total, the study said. At the opposite
end of the spectrum, stand-alone insurers British
Insurance charged a more affordable £7.80 a month for
accident, sickness and unemployment cover which would add
£468 to the total, Moneyfacts found.
This is Money campaigns editor Sascha Hutchinson said,
"PPI is one of the biggest rip-offs in personal
finance and we're concerned the hard-sell to customers
will only get worse. Policies are often mis-sold to
consumers who do not need them and would not even be able
to claim on them, and they are often vastly
over-priced." (Source: Mail on Sunday, Jun/06)
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