If you have been approached by your lender or an independent insurance producer about purchasing personal loan payment protection it probably sounds like a good cover to have. At least on the surface it does. After all, what could be wrong with an insurance policy that will ‘kick in’ to make loan repayments if you find yourself out of work due to redundancy, injury or illness? Take a moment, sit back and let this sink in. Plenty is wrong with personal loan payment protection!
Most UK Consumers Not Eligible
In the first place, very few people are ever eligible to draw benefits on the cover. It does not cover those who are, at the time the loan is agreed:
- Temporarily employed
- Self employed
- Contract workers
- Unemployed
- Diagnosed with a pre-existing medical condition
- Over the age of 65
- Pregnant
And the list goes on! If you were to look at the employment statistics in the UK, you would see that most companies have downsized and as a result a growing segment of the population falls into the first three categories.
Usually Results in a Mis Sold PPI Claim
Personal loan payment protection, for all intents and purposes, doesn’t exist for at least 85% of the population which means that there is no reason why a lender or independent insurance producer should try to sell it to you! It is overpriced and most often results in the hassle of having a mis sold PPI claim filed against the lender. What is wrong with personal loan payment protection? Just about everything! If you find that you have been mis sold PPI, then it’s time you see about getting a refund on any money you have paid on premiums and interest.
A good claims management company can help you file a claim if you are unsure how and will stay with that claim until you get your money back. In fact, that’s probably the only good thing about personal loan payment protection and that is that help is available in claiming it back.