Banks 'too pushy with PPI'

Amanda Jarvis

April 5, 2006

Moneyfacts.co.uk March poll highlights:
– 53% of consumers feel their bank has been too pushy when trying to sell insurance with a loan or credit card.
– 83% of consumers feel safer using chip and pin.
– 81% of consumers think that online banking is secure.
– 74% of consumers have seen a reduction in their disposable income over the last two years due to increased petrol and utility costs.

Emma Butler, moneyfacts.co.uk Editor, commented:
“Payment protection insurance can be a valuable insurance for some consumers and is something that should be considered when taking out a loan or credit card. However, providers encourage staff to cross-sell this product as part of the personal loan application process as it is extremely profitable and a great source of revenue. This leads providers to be ‘pushy’ when selling rather than considering the needs of the consumer. People should also be aware that, even if they decide they need this payment protection, standalone products are available from the likes of britishinsurance.com and paymentcare which can often be much cheaper and more flexible.

“An earlier moneyfacts.co.uk poll showed that, of those consumers who took out loan protection, only 41% actually know what they were covered for. This supports the fact that the customer may have been sold this cover for the benefit of the product provider, rather than their own peace of mind. If people are looking at taking on any form of insurance, it is imperative that they understand what they are covered for, before they sign up for it.”

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