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A recent study by consumer watchdog Which? has revealed that banks and lenders are doing everything they can to make as much money as possible from Payment Protection Insurance (PPI) before it’s banned from sale alongside loans.
No surprise there then, in fact it’s got so expensive to have a regular premium policy that the overall costs are similar to the single premium policies that caused so many people to claim a PPI refund and featured at the centre of the PPI disgrace row.
Not all lenders are still offering PPI policies based on the advice of the Financial Services Authority (FSA) and ahead of a ban imposed by the Competition Commission. Some however, are and the Which? research showed that a £5,000 Santander loan with regular premium PPI (which isn’t lumped on-top of the loan and doesn’t incur interest) – costs the same as single premium PPI would have in 2008!
Now that’s not exactly in the best interests of the customer is it? And leads us to think that we’ll be busier than ever as more people make ppi claims to get back the money that they feel was taken unfairly.
Essentially, those lenders that still provide PPI are looking to squeeze every last drop out of their customers before the ban comes into play next year. When will a lender stand out from the crowd and just offer a good, honest service to the benefit of the customer, it’s not a lot to ask is it?