Monday 29th January 2007
Post Office is encouraging borrowers to compare loans to see if they could get a better deal on their payment protection insurance.
The insurance, which is optional and covers repayments in events such as unexpected illness or redundancy, is often sold alongside a personal loan, Post Office states.
However, it warns that if the cost of payment protection insurance is added to the loan upfront, it may incur interest charges which disguise the true cost.
Claire Oldstein, head of communications at Post Office, urged people to check "what they might receive if they cancelled their payment protection but kept the loan".
"The refund could be substantial, so people shouldnt miss out," she advised.
According to Ms Oldstein, the use of third parties in claiming refunds is not necessary, with many taking a share of the money recouped.
She added that if consumers compare loans with standalone payment protection insurance policies, they may be able to receive the same cover at a lower cost.
Payment protection is offered by Post Office in its Lifestyle Protection policy which it says covers repayments and other spending such as utility bills.
©
Fill out a form to speak to an advisor about what type of loans might be right for you.
