It might be easy for banks to get a financial bail out from the Government when they fall on hard times, but it won’t be so easy for consumers to do the same, warns PPI lobbyist Sara-Ann Burgess from Burgesses.
With the UK economy already in recession and predictions that unemployment could rise by 350,000 next year and top the two million mark, consumers are being urged to guarantee their own financial bail out by buying Payment Protection Insurance.
Her comments follow news that RBS, Barclays and Lloyds TSB met Chancellor Alistair Darling this week to discuss ‘fundraising’ or rescue plan proposals. She queries: “It is all very well being able to secure billions of pounds of extra funding from the Government during these recession-hit times, but will customers struggling to meet their debts secure the same financial lifelines. No other insurance product offers a financial lifeline in the same way. It will pay out should you lose your job, become sick or have an accident, and meet your monthly debts for up to a year. There is a wide range of providers offering PPI and it’s acknowledged that the most competitive premiums can be sourced via independent firms where costs are often 10 times cheaper for loan protection, four times for mortgage and five times for income. Every day we hear that share prices are falling, profits are slumping and job losses are looming. This week LSUK has announced 680 redundancies, Focus DIY 750 and Accenture 400. The British Chamber of Commerce tells us confidence has collapsed in the manufacturing and service sectors. The economic slump will continue to spiral out of control and whilst no one should sell their products through fear, the statistics are compelling. Every job is at risk and consumers need a self-help financial package to support them should something happen to interrupt their income. The Government and banks will not bail them out, so they should turn to independent PPI providers.”
Income protection insurance: News update: October 2008