Payment protection insurance cover still popular
- 24TH JULY 2007
Payment protection insurance cover, once the favourite product of the high street banks offering it, is now the bane of those very same banks’ lives. Criticised for being a poor value product and offering consumers little chance of claiming on it, consumers could be forgiven for avoiding payment protection insurance cover like the plague.
However, that does not seem to be the case. Over 7 million policies offering payment protection insurance cover are still taken out every year, despite harsh criticism from the Citizens Advice; the Financial Services Authority (FSA) and the Office of Fair Trading (OFT) all of which have had – and still have - ongoing investigations into the practices of the market.
The sector is currently under review by the Competition Commission.
Consumers are beginning to recognise the real value of payment protection insurance cover in relation to its ability to cover debt repayments in the event of an individual being out of work owing to redundancy or sickness for an extended period of time. However, high street banks only offer single debt policies, whereby only one credit card balance or loan payment is covered.
Payment protection specialists British Insurance are one of the standalone payment protection insurance cover providers who offer a cover that would effectively bring all debts under one policy. Regardless of how many debts an individual has, they could all be brought together because the premium is determined on the level of overall debt. This offers far more peace of mind at a cheaper rate than having various debts under separate payment protection insurance covers.
