As it launches its own insurance policy for loan repayments, the Post Office criticised many PPI providers for failing to inform customers that they can shop around for better deals.
Welcoming the announcement, Pula Houghton, spokesman for Which?, said in the Mail on Sunday: “We support any steps taken to make consumers realise they don’t automatically have to take out bolt-on cover.
“However, we still do not believe that PPI is a suitable option for most people.”
Earlier this weak an investigation into PPI policies offered by loan providers found that many were charging around ten-times more for cover than independent providers.
Yet as Mr Houghton said, PPI is not always suitable to all borrowers due to the high charges and low payout rate compared to other insurance policies.