Disappointment with recent loan protection findings
- 17TH DECEMBER 2007
Loan protection hit the headlines in 2005 for all the wrong reasons after if was found there was wide spread mis-selling of payment protection insurance (PPI) on the whole. The Financial Services Authority (FSA) handed out fines to major high street names and then began to set out clear requirements for changes to the way the products were being sold.
Their most recent review has revealed that although some changes for the better have been seen, many firms are still not making sure that consumers are aware of the exclusions and the total cost of the loan protection at the time of buying. There are exclusions in a policy which mean you would not be able to claim, the common are if you only work part time, are retired, self-employed or suffer an ongoing illness.
Standalone providers such as payment protection specialist British Insurance make sure that consumers are given the key facts of a policy so that they can make an informed decision but many others are still falling short which has left the Financial Services Authority very disappointed.
When sold correctly loan protection can begin to give a tax free payout from the 31st day if you take a policy from British Insurance and lasts for up to 12 months. Other providers ask you are out of work for 90 days and can continue to payout for up to 24 months. The income would mean you would have the money each month to cover your loan repayments and so not get behind and into debt.
British Insurance can help you to make savings of up to 80% on the cost of the cover along with giving out the information needed for the consumer to make an informed decision regarding the suitability of the product. There are still clearly many problems that need to be overcome with loan protection if it is to be able to do the job it is supposed to do and sticking with a standalone provider such as British Insurance is the best way to take out the cover.
