Broker warns of misleading loan policies
WOLVERHAMPTON EXPRESS & STAR - 5TH MARCH 2004
A Staffordshire insurance broker has warned that some personal loan lenders are raking in millions on commission with inappropriate policies.
Burgesses director Sara-Ann Burgess Director Rosamond said new research for the company had revealed that lenders were employing “Misleading” sales techniques in order to persuade borrowers to sign on for the expensive cover to protect loans in the event of unemployment, accident or illness.
She said sales were now running at an astonishing 1,000 policies per hours, with lenders raking in a staggering £10million a day in premiums.
Nine out of 10 of the UK’s top 10 personal loan firms automatically included insurance cover in the loan quote when first contacted by mystery shoppers.
