The influential British Insurance Brokersí Association (BIBA) is delighted that Citizens Advice Bureaux are taking a stand against unscrupulous credit card insurance schemes.
BIBA says that many credit card customers are being ripped off by the schemes, which mis-sell payment protection insurance (PPI) to people who don’t need it or don’t qualify for it.
The association thinks lenders should not pressurise borrowers into taking their own insurance, and urges customers to shop around for the insurance instead.
BIBA’s Peter Staddon, head of technical services, said: “Payment protection can offer valuable cover. You may find that you canít keep up with your repayments for a variety of reasons that are out of your control such as losing your job.
“However, the quality of cover provided by policies and the premiums charged can vary dramatically so it pays to shop around. By going to an insurance broker you can be assured you are getting the right policy to meet all your needs should you lose your income.”
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