PPI sold by your Bank at the time you take out a loan is the most expensive way of funding PPI.
There are other Companies who sell PPI who will do so for less than 10% of the amount that you are borrowing, however, banks sell these Policies for around 30% of what you have borrowed and some charge up to 50%.
Your PPI Premium is paid for in one Single Premium and unlike most other types of insurance.
Your PPI Premium is paid for in one Single Premium and unlike most other types of insurance, you are not provided with the option of a monthly payment. In order to fund this insurance, the cost of the Premium is added to your loan, attracting further interest on the loan.
This a very expensive way of paying for an already expensive Policy and it is rarely explained to you how you will be paying for the Policy.
This is unacceptable, as you are entitled to know how much you are paying for an Insurance Policy and how this amount is to be funded.
If you did not receive advice about the cost or payment of your PPIPolicy, then click … to claim your Premium back, plus interest.
