View more on these topics

Worries about unemployment are boosting demand for PPI

Job uncertainty caused by the credit crunch is bolstering demand for payment protection insurance.

PPI provider says it saw enquiries for standalone PPI shoot up by nearly 50% in the week Lloyds TSB’s takeover of HBOS was unveiled.

Shane Craig, managing director of, says it has been inundated with calls, many from consumers unable to afford the protection deals being offered by high street lenders.

He says: “We are being bombarded with enquiries from consumers and the common theme is that individuals are finding the deals offered by high street lenders exorbitantly expensive.

“A growing number of applicants are telling us they have always thought PPI was a good thing but simply can’t afford theprices some high street lenders are charging.”

Craig adds that the economy looks to be toppling into recession and it makes more sense for consumers to take out PPI in the prevailing economic conditions than may have been the case in the past.

Sandy McPherson, head of marketing at Paymentshield, says it has also seen a surge in demand for PPI in the past three months and that this could be a result of increased awareness of the product combined with despair in the face of a failing economy.

He says: “I think consumers are starting to worry about how they are going to repay their loans or mortgages.

“It is becoming the norm for them to source their insurance from different providers from their loans.”

McPherson adds: “High street lenders are not necessarily more expensive but it normally works out cheaper to take out a loan with one lender and insurance from a different provider.”


Lloyds TSB faces Scottish rebellion

Jim Spowart, founder of Standard Life Bank and the man who put Intelligent Finance on the map for HBOS, went on the BBC’s Breakfast TV show on September 23 to add some media momentum to a Scottish National Party bid for Bank of Scotland.

Legal services are an important revenue stream

When Lord Falconer’s plan to deregulate the legal services profession was first announced in March 2005, it was immediately dubbed the ‘Tesco law’.

EC to regulate credit rating agencies

The European Commission’s consultation on credit rating agencies ended last month and by the end of October the EC will table proposals to regulate them.

Choose life…

Sarah Scott  – Marketing Consultant, Royal London  This month sees the return of Renton, Sickboy, Begbie and Spud in the sequel to the film Trainspotting. Just over 20 years later, we return to see exactly how life treated the characters whose lifestyle was less than ideal back in 1996. Did they choose a job, choose […]


News and expert analysis straight to your inbox

Sign up