New rules regarding the sale of payment protection insurance (PPI) are likely to benefit consumers, Which? has stated.
Personal finance campaigner at the consumer rights body Lucy Widenka described the ruling – which prevents PPI being sold to a customer within 14 days of them taking out a financial credit plan – as a “victory for consumers”.
And the banning of single premium polices has also been suggested, a move which has been welcomed by Ms Widenka.
“With the single premium policy it is added to the loan or the credit product itself and then you are actually paying interest on top of it,” she explained, adding that such products have been “shown to cause the biggest amount of consumer detriment”.
Clare Francis of moneysupermarket.com recently noted that PPIs can be useful to those struggling with debt management, as those who have a change in personal circumstances often apply for them to get help with their debt.
By Tom Musk