for payment protection
its an extra 3.5k

it is worth it

seems a rip-off too me

"Payment protection" of what exactly?

Personally I don't believe in this sort of insurance/protection generally. I have no dependents and also low risk factors in respect of sustianing my income stream (eg. history of family illness).

I take an amount equivalent to the premium and invest it separately.

£12K is alot of money we have PP, but then i worry a lot and have insurance on everything
if you are able to pay back the loan early you should get some of your PP back

you need to weigh up the pro's and con's if you cannot work will you be able to afford it? does the PP right off the debt if anything were to happen to you?

quote:

Originally posted by caddyshak:
for payment protection
its an extra 3.5k

it is worth it

seems a rip-off too me

£3500 for 3 years sounds a tad expensive, maybe you should get quotes from other loan companies. Hundreds of thousands of people succesfully claim on payment protection each year, so it may be worth the peace of mind, knowing your credit rating is protected etc, but I would expect the premium to be between £1500 and £2000 for a three year loan, so it sounds like you are paying too much for this insurance.

Payment Protection is a waste of time

My husband works in personal finance and none of his colleagues would ever take out PPP. They know what a rip off it is. Neither he nor I have it for our loans.

on the news recently a lady took out payment protection - only to find out she wasn't covered when she became ill - wouldn't recomend taking it out - if you do READ THE SMALL PRINT and make sure your covered for illness etc

quote:

Originally posted by stateofplay:

quote:

Originally posted by caddyshak:
for payment protection
its an extra 3.5k

it is worth it

seems a rip-off too me

£3500 for 3 years sounds a tad expensive, maybe you should get quotes from other loan companies. Hundreds of thousands of people succesfully claim on payment protection each year, so it may be worth the peace of mind, knowing your credit rating is protected etc, but I would expect the premium to be between £1500 and £2000 for a three year loan, so it sounds like you are paying too much for this insurance.

Does not having PP affect your credit rating then?

quote:

Originally posted by Jamlamont:

quote:

Originally posted by stateofplay:

quote:

Originally posted by caddyshak:
for payment protection
its an extra 3.5k

it is worth it

seems a rip-off too me

£3500 for 3 years sounds a tad expensive, maybe you should get quotes from other loan companies. Hundreds of thousands of people succesfully claim on payment protection each year, so it may be worth the peace of mind, knowing your credit rating is protected etc, but I would expect the premium to be between £1500 and £2000 for a three year loan, so it sounds like you are paying too much for this insurance.

Does not having PP affect your credit rating then?

If you are unable to work and cannot pay your loan, yes.

Its how lenders earn extra cahs

quote:

Originally posted by benarbia:
Its how lenders earn extra cahs

Actually, it's how lenders make money on loans full stop. A Bank that lends £7500 @ 6.9% over 3 years will make virtually nothing if it is without insurance. This is because they borrow the money to lend the money so have a tight margin, as well as overheads in paying staff to arrange the loan, as well as the cost of administration for the term of the loan. Then factor in those who do not repay the loan, and suddenly the profit has all gone. So if they stopped selling protection all together, they would have to raise the interest rate on their product range to make any money out of it.

That's business for you.

banks offer 4%interest in your bank account[ if u get down and begQUOTE]Originally posted by stateofplay:

quote:

Originally posted by benarbia:
Its how lenders earn extra cahs

Actually, it's how lenders make money on loans full stop. A Bank that lends £7500 @ 6.9% over 3 years will make virtually nothing if it is without insurance. This is because they borrow the money to lend the money so have a tight margin, as well as overheads in paying staff to arrange the loan, as well as the cost of administration for the term of the loan. Then factor in those who do not repay the loan, and suddenly the profit has all gone. So if they stopped selling protection all together, they would have to raise the interest rate on their product range to make any money out of it.

That's business for you.[/QUOTE]

I don't have payment protection anymore, well, not on the last two cars i've owned anyway. It's such a rip off and at the end of the day if it's on the assumption that the loan/hp was for a car then you've already got an asset to clear most of the loan anyway if the worst happens such as losing your job etc.

Wasn't there something in the news regarding finance companies charging too much for protection?