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Rip-off loan cover scandal costs consumer 1,400

Research by Burgesses, the insurance protection company, reveals that consumers could save more than 1,400 on a 7,500 loan by buying loan protection insurance independently rather than through banks.

Simon Burgess, managing director of Burgesses, says: “The findings reveal that banks continue to profiteer from selling this product and that people are paying a heavy price for failing to shop around.

“They are succumbing to underhand tactics often used by banks, which include adding the cost of cover to the loan without necessarily telling people they have done so.”

Burgesses recommend that before signing an agreement consumers should check carefully that loan protection insurance has not been included in the cost of the loan.

If protection is included, consumers should make sure they fully understand what they are covered for and how much it will cost them.

They should also consider what the benefits will be if they lose their job because they could be better off with an income protection policy rather than loan protection.

Finally, Burgesses advise that consumers can complain to the company and potentially have a case to take to the Financial Ombudsman Service if they have been mis-sold a policy.


Friends Provident teams up with Portman

Friends Provident, the financial services group, and Portman has entered into a major distribution agreement.From November 15 2005, Friends Provident protection products will be sold through the building society’s financial planning business. Under the agreement, Friends Provident will be the only provider to offer its range of protection products, including life cover, critical illness and […]

Sub-prime market in crisis

Carl Wright, managing director at Cartel, is warning that the sub-prime market is in crisis, and runs the risk of becoming the next big miss-selling scandal.The recently announced Financial Service Authorities investigation into the market he says will uncover how a significant number of brokers are miss advising clients to take out sub-prime mortgages, when […]

Women’s Financial Adviser Group unveils 2005 awards

The annual search is on to find the UKs top women advisers. This year, new award categories are being offered to reflect the Groups wider membership. The five categories are: best woman IFA (including WOM), best multitied, tied and mortgage advisers, and best female paraplanner. Successful candidates will demonstrate technical and professional excellence, and show […]

Packagers can help you make money

It is as entrepreneurs rather than middle men that packagers will create real added value for lenders and brokers in the lucrative sub-prime sector, says Frances Scanlan

Image courtesy of Stuart Miles at

Pension freedom: wish you were here?

Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.


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