Motorists aren't getting the best deals
19 October 2006
- Billions spent on loan insurance every year…
- …but consumers aren't doing their homework…
- …and are losing out as a result
Millions of consumers are in danger of being ripped off by the £5.5 billion-a-year payment protection insurance (PPI) industry.
The Office of Fair Trading is so concerned that consumers aren't getting good deals on PPI, which aims to cover payments on loans if people fall ill or lose their jobs, that it's referring the industry to the Competition Commission for closer inspection and action.
The OFT's own investigation followed a 'super complaint' from the National Consumer Council. If found that consumers don’t shop around for the best deal, find it hard to compare different PPI offers and are often given the impression that taking out the insurance will help in their application for credit
It also found that too many consumers leave finance decisions to the last minute and are pressurised into uncompetitive deals in showrooms as a result.
• Never wait until you're at the car showroom to make your decision on finance - dealers make a killing out of motorists who haven't researched the best rates.
Shop around for the cheapest loan and PPI deals before you turn up to buy the car and you could save thousands of pounds.
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