Borrowers are scrambling to protect their loans with PPI before they fall foul of the recession and lose their jobs, says standalone PPI provider Paymentcare.co.uk.
Paymentcare’s Shane Craig says, “Over the past few weeks our phones have been ringing off the hook with enquiries from worried borrowers who want to buy themselves peace of mind in these troubled times. Every day brings more alarming headlines on redundancy and repossessions and as a result people are seriously worried now. It is redundancy that frightens them most. Their main concern is to protect their home and stay as far away from the dreaded prospect of repossession. Their perception of risk has changed. People who would not have considered the idea of insurance this time last year are no longer confident that they can escape unscathed. Despite the recent rate cuts and drop in inflation their confidence in the future has been badly shaken and they can see the value in being better safe than sorry.”
Many of the callers are borrowers who did consider the idea of PPI when they took out their loans but decided the cost of their lender’s own protection was too high. But now that the threat of redundancy is a real consideration they have revisited the subject and have sought out the most affordable way of protecting themselves.
Shane Craig adds, “Claims by some insurance and banking industry figures that the Competition Commission’s recent proposal to ban point-of-sale PPI will result in huge numbers of borrowers going without protection look like being way off the mark. Our experience tells us that borrowers are a lot more clued up these days and are not just waiting to be spoon-fed financial advice. They are taking control and that is going to make all the difference going forward.”
Income protection insurance: News update: December 2008