Personal loan holders could save on insurance

Thu, 15 Dec 2005

Personal loan holders can save thousands of pounds by choosing independent payment protection insurance, a new study shows.

Many personal loan holders are unaware of the fact that they are paying for payment protection insurance, while others don't realise that they don't have to take out the insurance from their personal loan provider, says Paymentcare.

The independent payment protection insurance broker found that many banks and other personal loan providers still fail with regards to clarity about payment protection insurance.

By choosing stand-alone insurance companies, however, Paymentcare believes those holding a personal loan of £7,500 can save an average of £3,353 on repayments over the repayment term.

"Bank sales teams are encouraged to pursue hard sell tactics, as lenders make phenomenally high levels of profit from selling payment protection insurance cover," says Paymentcare's managing director, Shane Craig.

"We estimate that, out of the £4 billion spent by borrowers on payment protection insurance every year, around £2.5 billion is stripped out by the banks in commission payments."

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

newsnews rss
Personal loans news
BBA Reveals Home Loan Dip - Mon, 26 Jul 2010
Government to Conduct Personal Loan Review - Thu, 22 Jul 2010
Positive Home Loan Trend Continues in May - Fri, 16 Jul 2010
More News
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form