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