More than a million people in the UK wrongly think that taking out payment protection insurance (PPI) will give them a greater chance of securing credit, according to consumer watchdog Which ? .
New research has revealed that of the 9.8 million Brits who have credit cards with PPI, 13 per cent believe that they had to buy PPI either as a requirement of the deal or because they were more likely to be approved for the card if they had it.
However, Doug Taylor, personal finance campaigner for Which? said that credit card PPI is "a useless product, expensive and poorly designed". He added that it doesn’t provide the protection required and that instead people should protect their finances by getting independent financial advice .
PPI is sold alongside such products as credit cards and loans to cover repayments if people lose their income through illness or unemployment .
Credit card PPI usually covers only the minimum monthly repayment, which means that the balance may never be paid off.
Role of payment protection insurance credit not understood by Brits
Financial Services > Income lnsurance > News
Role of payment protection insurance credit not understood by Brits
Mon, 15 Sep 2008
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