Mortgage lender Liverpool Victoria bank have been fined by the financial governing body FSA, for adding payment protection insurance to customer loans without asking if it is wanted.
FSA investigators found Liverpool Victoria bank guilty of adding the premiums for the protection plan to quotes when customers applied for a loan. The company also put undue pressure on it’s clients to accept the policies even after the customer found it was not compulsory.
The bank failed to explain that the policy premiums were added to customers’ loans upfront and had interest charged on them as well.
The FSA fined the lender £840,000.
While the benefits of Mortgage Protection Payment are evident, never accept a loan from a bank or lender that builds it in to your premium automatically. If you feel you need this cover, then a standalone policy will be a much better option.
0 comments so far
There are no comments for this post yet. Why not be the first by filling out the form below.