Paymentcare, a leading independent provider of stand-alone payment protection insurance welcomes the news that mainstream lenders will no longer be able to sell payment protection insurance policies when agreeing customer loans.
Shane Craig of Paymentcare says, “Finally, consumers will now be aware that they have a choice of payment protection insurance provider and be able to secure cover at reasonable rates. It has perhaps taken too long, but we applaud the Competition Commission for staying with this difficult case, especially in view of the immense pressure put upon it by banks and other mainstream lenders who stand to lose the most. While consumers have been pouring millions of pounds into lenders’ pockets over the past few years, there has always been an affordable, genuine alternative way for them to protect their loan repayments in the form of stand alone PPI.Now, at long last, they will have a fair chance of making an informed decision, without pressure, without the risk that they might be signing up for a policy that they either do not need or is inappropriate to their circumstances and that could cost them far more than they need to pay.”
Lenders will now have to wait seven days before offering PPI to their customers. The restriction will cover the sale of all forms of PPI - for example to support borrowing on credit cards, mortgages and bank loans.