Beware of a backlash from loan providers
A
Motley Fool product story
Edited by the Insidemoneytalk editorial team
Dec 2, 1999
Fool.co.uk responds to the Competition Commission remedies on PPI
David Kuo, Head of Personal Finance at money website Fool.co.uk, says: "Payment Protection Insurance (PPI) has not only been the icing on the cake but the cake itself for loan providers.
"The difference between taking out a loan with insurance and one without can mean the difference between borrowing money at 17.8% and 7.9%.
"So borrowers need to be alert to a possible backlash from loan providers following the Competition Commission's move to ban PPI distributors from flogging the insurance at the same time as selling the underlying loan.
"After lenders have tasted gateau worth ?5 billion in annual revenues, stale sponge doesn't quite have the same appeal anymore.".
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