£1,500 could be saved on payment protection insurance
Published On 30 January 2007
A saving of £1,500 could be made by switching to a cheaper payment protection policy, it has been claimed.According to the Post Office, many payment protection cover packages that are bundled with loans do not represent value for money.
The Post Office believes that its own new payment protection plan – Lifestyle Protection – is an example of a standalone protection that works out far cheaper than those offered by the leading banks.
A person with a loan of £7,500 over five years, it says, could receive a refund of £1,500 from cancelling a payment protection policy that accompanies the loan.
Claire Oldstein, Post Office head of communications, said: "People with a protected loan should call their lender and ask what they might receive if they cancelled their payment protection but kept the loan.
"The refund could be substantial, so people shouldn't miss out."
Ms Oldstein also said that there was no need to involve a third party – who would likely take a cut of any pay out.
The Post Office also now offers credit card products.
