Customers are still being mis-sold Payment Protection Insurance (PPI) according to consumer watchdog “Which”.
The research found that in 24 of 41 cases, the lenders automatically added PPI without the consumer being told that it was part of their package, that it was optional, or the customer’s eligibility for benefits were checked.
Using mystery shopping techniques, Which? found that the worst offenders were the Royal Bank of Scotland and Natwest.
Adding PPI cover to a loan can increase repayments significantly, burdening those working to tight budgets even further.
Jo Gill from Chiltern said, “By stealthily adding an amount to customers’ repayments, lenders are putting more stress on those already suffering under the weight of debt. This additional payment could be better used to alleviate their problems thus helping them repay their debts quicker.”
The cover must be optional by law, however in reality the survey conducted found that this often wasn’t the case.
