PPI study highlights fresh TCF concern

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Consumers may be purchasing unsuitable payment protection insurance (PPI) policies because they believe they have no choice but to accept their lender's own policy, research suggests.

A study, conducted as part of the Competition Commission’s (CC’s) investigation into PPI sales, found 73% of personal loan PPI and 72% of secured loan PPI consumers, who had not compared policies, believed they could only buy from their credit provider. In addition, 42% of mortgage PPI borrowers who did not compare policies did so because they were unaware of their options. The study found only 21% of mortgage PPI customers who had not bought their policy through an adviser compared policies, as did 11% of secured loan borrowers and 12% of personal loan customers. The study was conduc...

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