Financial product insurance pushed on consumers, reveals report

Wed, 05 Apr 2006

Over half of consumers said their bank had been too pushy when trying to sell them insurance for a loan or a credit card, suggests a survey.

Editor of the website moneyfacts, Emma Butler, said that banks were often overly keen to sell loan insurance cover, as sales of the financial product are a source of very profitable revenue.

"This leads providers to be pushy when selling rather than considering the needs of the consumer," she said.

She also advised consumers that it might be worth looking at standalone loan protection plans that offer the same as the banks' financial products but often at a reduced price.

Previously a moneyfacts poll showed that under 50 per cent of those who opted for loan protection actually knew what they were covered for.

"This supports the fact that the customer may have been sold this cover for the benefit of the product provider, rather than their own peace of mind," said Ms Butler.

She urged consumers to ensure they were fully aware of the details of the loan protection plan before they signed up for anything.

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