That PrimeTime Show on Payment Protection Policies
- Thread starter ajapale
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you would have a choice from what i can tell. any banks i have looked at do loans with payment protection and loans without it. this is also shown in writing. if you don't have a choice why give people the option? i have had loans in the past with more than one bank and was given a choice with all of them. i was never forced to take out payment protection. anyway, a person should be able to make up their own mind.
Alex.
Alex.
It's marketed fairly aggressively. They probably prey on the insecure and financially illiterate. If I can download the show I must have a look. I thought the last one on banks was fairly sensationalist.
When you stick figures into loan calculators, you usually get two answers; one quote with PP, one without. I'm smart enough to know not to go for the quote with PP, but both are given equal promenance, and sometimes the quote with PP is listed first.
When you stick figures into loan calculators, you usually get two answers; one quote with PP, one without. I'm smart enough to know not to go for the quote with PP, but both are given equal promenance, and sometimes the quote with PP is listed first.
Brendan Burgess
Founder
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The problem is that not all people are as informed and confident.
I did some mystery shopping a few years ago and the figures over the phone were confusing. Some at least did not give me the price excluding PPI. One was reluctant to quote me without PPI.
There is a general feeling in this country that we must insure everything against every eventuality, so if you are borrowing money, why the hell not insure against losing your job? Few people question the cost benefit.
Brendan
I did some mystery shopping a few years ago and the figures over the phone were confusing. Some at least did not give me the price excluding PPI. One was reluctant to quote me without PPI.
There is a general feeling in this country that we must insure everything against every eventuality, so if you are borrowing money, why the hell not insure against losing your job? Few people question the cost benefit.
Brendan
We were told we MUST take out mortgage protection recently when we released equity of 100k from our PPR. We didn't have to go with the Building Society's crowd (although we did) but we weren't given a choice as to whether to have protection or not. They wouldn't give us the money otherwise they said. If it is true that it's not compulsory, would we have a case to go back and say we don't want that cover???
DrMoriarty
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Andrewa, I think you're confusing (compulsory) mortgage protection insurance — which clears your mortgage in the event of your death — and repayment protection, which guarantees to cover your monthly repayments for a certain period in the event of, say, you losing your job. The latter is optional but, as Brendan points out, institutions aren't always as open/candid about the matter as they should be...
Last time I remortgaged, I had to sign a disclaimer saying I'd been offered a repayment protection policy and had declined it.
Last time I remortgaged, I had to sign a disclaimer saying I'd been offered a repayment protection policy and had declined it.
I think this sort of thing though would frighten those not too clued into financial matters into thinking "Am I taking a big risk here by not having payment protection if I have to sign a waiver". Also my husband is self-employed and when applying for a small business loan was offered PP even though the institution knew he wouldn't be suitable didn't point it out. He declined it but how many others would if presented with aggresive selling techniques of signing waivers implying that the PP was almost essential?!
I think this is about 90% bottle of smoke...
1. The PT programme did not give much more info than I knew already from the UK (except that commissions were 50% of premium).
2. It omitted to state that the FSA had a look at this and found that the banks were clean. It was the subprime lenders (garages selling car finance, store credit cards etc.) that had the problems. The report is on the FSA website.
3. Despite the level of commissions here, it omitted to state that commissions in the UK are higher (yes, higher than 50%). I agree that there should be disclosure.
4. I got the impression from Sean Fleming (interviewed) that despite the initial "shock and awe" he seemed to know about alot about what was going on. Its a pity that Mark Little does not dig a little more rather than trying to put a shocking soundbite in the interviewee's mouth and once he gets them say to what he wants them to say he backs off...
I agree with Brendan that this is one that mainly hits the poor and uneducated.
1. The PT programme did not give much more info than I knew already from the UK (except that commissions were 50% of premium).
2. It omitted to state that the FSA had a look at this and found that the banks were clean. It was the subprime lenders (garages selling car finance, store credit cards etc.) that had the problems. The report is on the FSA website.
3. Despite the level of commissions here, it omitted to state that commissions in the UK are higher (yes, higher than 50%). I agree that there should be disclosure.
4. I got the impression from Sean Fleming (interviewed) that despite the initial "shock and awe" he seemed to know about alot about what was going on. Its a pity that Mark Little does not dig a little more rather than trying to put a shocking soundbite in the interviewee's mouth and once he gets them say to what he wants them to say he backs off...
I agree with Brendan that this is one that mainly hits the poor and uneducated.
i did well out of getting payment protection. it helped me when i was ill. i agree that people are given the choice. all banks will give you a loan with pp and they will also give you a loan without pp. really a person should make it their business to know what they are getting into.