A pat on the back for good work is always welcome, isn’t it? moneysupermarket.com, the price comparison website applauded Cahoot for its outstanding value payment protection insurance (PPI) sold along with its personal loans.
moneysupermarket.com revealed that the PPI from Cahoot with a personal loan at 6.7% APR over five years totalled to only £862, against other lenders having a lesser 5.7% APR but in turn offering a much more expensive PPI of £2,083.
moneysupermarket.com discovered Cahoot’s exclusivity regarding PPI, in its attempts to persuade customers to ‘shop around’ to get the best deal possible for their loan covers in the market since PPI sold along with personal loans had always proved to be expensive.
The site also noted that some lenders increased their PPIs if they were offering low personal loan rates without intimating any such rise to the customer. Therefore, customers had to be increasingly wary of lenders’ PPI rates. Richard Mason, director of personal loans at moneysupermarket.com says, “Despite claims from the industry that this insurance is over-priced, over-valued and often mis-sold, providers still continue to push their products at extortionately high prices.”
The new data released by moneysupermarket clearly stated that a PPI sold with a personal loan raised repayment costs to more than about £2,000. With personal loans being available at phenomenally low rates of interest, lenders were looking for novel ways to mint some money and had now set their eyes on PPI covers.
Moneysupermarket finally reiterated that whatever the case might be, it was always better and cheaper to take a separate payment protection insurance (PPI) cover for loan repayments, instead of opting for the lenders’ own cover.
Posted
on : Tue, 12 Apr 2005 00:00 GMT | Loans News
By : Mark Richardson
|
