Compare Loans  |  Secured Loans  |  Loans Advice  |  Best Buys  |  Loan Providers  |  Call Me Back

 

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.

 
     
 
 
Related News
  04/09/2008 - Price of loans increase. . The price of personal loans has increased, in the effort of the crackdown in...
29/08/2008 - Economists predict a fall in the interest rate. . Economists have predicted that the interest rate will be lowered in the next month,...
20/08/2008 - Loan rates climbing to new high. . Personal loan rates have, depressingly for some, reached a new low as repayment rates...
 
Related Guides
  Unsecured loans. . In the quest for borrowing money, all consumers must explore all options available to...
Top Tips to Secured loans. . In the venture to borrowing money, one must be aware of the type of...
Secured Loans. What is a secured loan? How much can I borrow on a secured loan? How...
 
Related Articles
  26/08/2008 - Tips to repair your credit history. . A credit report can be a powerful and influencing force in your life. Lenders...
21/08/2008 - Loan woes. . A number of lenders, in the UK have increased the interest rates that they...
22/07/2008 - Loans – the process of getting credit. . If you are looking to get a loan there a few things you can...
Loans Advice
Loans Advice Call our loan advisers
0800 1777 197


Best Buy Loans Best Buy
Personal Loans Click Here
Secured Loans Click Here
Car Loans Click Here
Debt Consolidation Click Here
Refused Credit Click Here
Same Day Fund Click Here
Low Value Fund Click Here




THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPATMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
MISSING PAYMENTS WILL HAVE SEVERE CONSEQUENCES AND MAY MAKE OBTAINING CREDIT MORE DIFFICULT IN THE FUTURE.

Only Loans Ltd is authorised and regulated by the Financial Services Authority, FSA registration number: 439110. Our registered offices are 1 Kings Avenue, Winchmore Hill, London N21 3NA, company number: 05222154. Telephone 0207 377 1805.

About Us  |  Site Map  |  Disclaimer  |  Terms & Conditions  |  Privacy Policy  |  Contact Us