Payment Protection?

J

jdwexford

Guest
Hi
I was on to BOI for a loan. The guy at the end of the phone included payment protection.
Is this generally worth it?

More particularly, I will probably pay off the loan in a much shorter timeframe than specified in the agreement.

In other words, say the loan is for 12k. Then the amount adavanced on the loan agreement is down as nearly 13k. The agreement is for 36 months. Am I paying the extra 1k even if I have te loan paid off within 6/7 months? Is the rep chasing commission?
jd
 
hmm, I figured as much..
He tried t imply that I would only be paying while the loan was in existance...
 
I can give you the example of One Direct.

They calculate the total payment protection premiums for the duration of the loan, let's say it comes to €2000, and then they add that €2000 onto the amount being borrowed.

So, they get paid the premiums for payment protection up front, regardless of how long the loan runs, AND they manage to charge interest on an extra €2000.

It should be illegal.

I avoid buying any kind of insurance that I'm not legally obliged to own. It's an approach that has been very useful.

Also don't fall for their "suggestion" that you have to get payment protection. I had a credit card company try this one with me.

That should also be illegal.

-Rd
 
..

I once had a bank official suggest to me that I take out payment protection as he himself thought it was a great thing. "Yes", I said, "but then you're probably more likely to lose your job than I am". End of hard sell.

Daltonr, have you considered approaching IFSRA regarding the borrowing for insurance scam you outlined?
 
Re: ..

Daltonr, have you considered approaching IFSRA regarding the borrowing for insurance scam you outlined?
Click to expand...

I have considered it. But as far as I can see they are not doing anything illegal. They do tell you up front, although you do have to read the small print to figure out that that's what they are doing.

My problem with approaching IFSRA is that when there was a clear cut case of a bank lying it took a lot of effort by a fellow AAMer to get IFSRA to agree that there was a problem. They initially defended the bank, and only relented after a lot of pressure.

Then of course they took full credit for being proactive on the matter when they released their report.

So, I'm reluctant to waste my time with them on this issue.

Maybe if some AAMers get onto the Consumer Panel I'll mention it to them and see what happens.

Until then I'll just keep warning people to read the small print.
Ask lot's of questions.

-Rd
 
Re: ..

MBNA's biggest earner..........................payment protection.
 
Re: ..

Payment protection always created an image of a big burly guy with a baseball bat saying:

"Nice credit rating you got there. Shame if something
were to happen to it."

-Rd
 
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