New figures published by the Financial Ombudsman Service (FOS) shows that payment protection insurance accounted for almost 40% of insurance related complaints in the first quarter of 2008. The majority of those payment protection insurance complaints were related to sales made by banks and lenders.
An FOS spokesperson said “We are still seeing too many payment protection insurance cases coming in to the ombudsman service.”
It has been routine for banks to add payment protection insurance to a borrowers loan or finance quotation without even telling them. The insurance cost is simply added to the amount borrowed incurring additional interest charges for the life of the loan. Many payment protection insurance polices were completely unsuitable for clients who were unaware of the insurance cover they have. Widespread media coverage and campaigns by Which? have led people to take a stand and complain to their lender.
Payment protection insurance does not have to be taken from the finance provider. In fact this is invariably the most expensive route to take. A better option would be to seek payment protection insurance from an independent supplier who then has to compete for your business on price and quality of cover.
We offer three main payment protection insurance policies which are all competitively priced and available online:
All are independent of your mortgage, finance or loan company.