Thursday 15th November 2007
People who use credit cards should consider obtaining payment protection insurance (PPI), it has been claimed.
Shane Craig, managing director of PPI provider Paymentcare, notes that credit cards are typically the most expensive means of borrowing money.
As such, he argues that the risk posed by missing repayments due to illness or unemployment are greater than with other types of lending.
"PPI for personal loans is certainly the largest sector of the market because the sums are much higher than the average credit card balance," Mr Craig observes.
But he warns against complacency for consumers who regularly reach their credit limit when spending on plastic.
"With credit cards being the most expensive way of borrowing money, the cumulative effects of not being able to make your repayments are punitive," he asserts.
However, investigations by the Financial Services Authority have revealed that many lenders still have not adequately trained their staff to ensure customers are given full information about their PPI policies.
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