The average saving made by customers choosing payment protection insurance from independent provider Paymentcare rather than their lender is a whopping £2,739.77, an in-house survey alleges.
According to Paymentcare, policy holders who responded to an email survey carried out over the past year have confirmed just how much profit high street lenders are making from selling their own over-priced PPI policies along with loans and credit cards.
“Our customers have always been eager to tell us how much they have saved by coming to us,” says Paymentcare managing director Shane Craig. “Having looked at both options, they know that our stand-alone monthly paid policies offer great value for money compared to the single premium option offered by their lender. They are only too happy to speak up so that other consumers are made aware that there is no need to pay thousands of pounds over the odds for protection on top of their borrowing.”
As an average saving, £2,739.77 is a considerable sum, but this is, an average - some customers have saved as much as £5,000. Potential savings will be dependant on individual circumstances.
For consumers who find they need to borrow money, having to stump up such sums for insurance on top of their loan can only compound their financial problems.
Income protection: News update: July 2007