Loans -
Lenders Suspicious Of Standalone PPI - 04/04/2008
|
Borrowers who take out separate Payment Protection Insurance (PPI) separate from their loans are treated with suspicion by Lenders, experts have warned.
British Insurance’s Simon Bruges said lenders are now turning down loan applications of new customers and are become more suspicious of those that prefer to purchase separate PPI from their loans.
“Lenders will use any old excuse for why they blatantly profiteer from customers,” he said, while questioning the rationale for forcing PPI on customers who take out loans, but those that choose to purchase separate PPI are given a different treatment.
“It’s also hypocritical, these same lenders are happy to push their home, motor and travel products onto consumers en-mass without scrupulous questioning so why are they so afraid to do it for PPI” he queried.
A recent Competition Commission survey has shown that lenders believe borrowers who turn down PPI offer from them and shop their insurance product independently are more likely to make claims than those who take out PPI while applying for credit card.
The poll also revealed that lenders see those who refuse PPI from them as greater risk than those who accept.
Meanwhile, a Bank of England quarterly report has warned that credit crisis will worsen as summer draws in, and that lenders would make it harder for borrowers to take out loans.
The study said banks and building societies have cut the number of loans available to households over the quarter and that more reduction in secured credit availability is expected in the next three months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan quotations are provided by Leadbay
Ltd. Leadbay Ltd is authorised and regulated by the Financial
Services Authority. |
|