Jun 27
Mystery Shoppers Reveal Loan Insurance Scam
In London, a mystery shopper on the job as an undercover loan customer revealed a common industry scam: the inclusion of PPI or loan insurance in Internet and telephone quotes.
The purpose of PPI is no scam. It does exist and serves to protect the lender in case a customer suddenly loses their job or is suddenly unable to make a payment for some reason. PPI, however, is an optional feature and should only be included in the quote upon requested.
Mystery shopping revealed that about half of all loan quotes by telephone automatically included PPI insurance prices. Many lenders quoted prices both with and without PPI and HSBC didn’t include PPI prices at all.
Online, the results were much the same but a few lenders gave customers the option of a PPI-free quote by clicking through a few extra pages.
Regulations in this area are clamping down to protect the consumer from inflated prices and misleading advertising.
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July 3rd, 2007 at 4:11 am
No, it is actually the way you want.