Credit squeeze Should Not Equal Payment Protection Insurance Rip-off Says British Insurance

With 75% of cheap deals in the mortgage sector axed since last summer, cash-strapped consumers are less able to shop around for loans so are more likely to be ripped-off when it comes to Payment Protection Insurance, warns Simon Burgess from independent PPI provider, British Insurance.

Braintree, Essex (PRWEB) April 27, 2008 -- With 75% of cheap deals in the mortgage sector axed since last summer, cash-strapped consumers are less able to shop around for loans so are more likely to be ripped-off when it comes to payment protection insurance, warns Simon Burgess from independent PPI provider, British Insurance.

He comments: "Although lenders dispute that consumers are pressurised into purchasing payment protection insurance alongside a loan, it's widely recognised this practise continues. Given the current restrictive climate, consumers are more likely than ever, to agree to purchase the lenders' PPI in the mistaken belief it will help with their credit application."

The average property price in the UK is now £221,758 and this coupled with spiralling fuel, utility and food costs, leaves consumers with less spare cash than ever. So spend what's left wisely - choose a PPI policy that represents good value for money both in the premiums on offer and the cover provided.

The British Bankers' Association indicates that lending is 46% down on the previous year and its March 2008 figure of 35,417 new mortgage approvals is the lowest since September 1997. Burgess continues: "Consumers are already facing the prospect of fewer product ranges, a tighter lending criteria and higher costs, so they don't need to add to their burden with sky-high PPI premiums that will add thousands onto the cost of a loan."

He believes lenders looking to recoup some of their losses rely on payment protection insurance to boost their coffers: "Given this sector is worth around £5.5bn and the major High Street brands take over 90% of the premiums, they will be keener than ever to flog their over-priced and exclusion-riddled policies."

Simon concludes: "The average property price in the UK is now £221,758 and this coupled with spiralling fuel, utility and food costs, leaves consumers with less spare cash than ever. So spend what's left wisely - choose a PPI policy that represents good value for money both in the premiums on offer and the cover provided."

The Competition Commission is currently investigating the PPI sector and will publish its provisional findings and remedies in May.

Further information on payment protection insurance can be found at www.britishinsurance.com

###

Post Comment:
Trackback URL: http://www.prweb.com/pingpr.php/WmV0YS1FbXB0LVNpbmctWmV0YS1GYWx1LVplcm8=

payment protection insurance ppi cover ppi protection insurance

Bookmark -  Del.icio.us | Digg | Furl It | Spurl | RawSugar | Simpy | Shadows | Blink It | My Web