£8bn to protect loans
BIRMINGHAM EVENING MAIL - 6TH APRIL 2005
Lenders are raking in £22 million a day in commission from sales of expensive loan protection, it was claimed today.
Up to 1,000 loan insurance deals a day are being arranged with the market now worth up to £8 billion a year, according to specialist broker Burgesses.
The policies have come under fire from consumer groups which have dismissed the policies as “offering little benefit.”
Simon Burgess, Burgesses, managing director, said: “Increasing borrowers debts with front loaded and excessively priced loan protection is profiteering which must be stopped.
But he said his company had now launched a monthly loan protection policy with comparable cover to established lenders that was lower cost.
