loan protection

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Loan protection costs

CAB table of premiums with and without PPI

Loan Type	Loan Amount	PPI Premium	Premium as % of total loan
Unsecured personal loan	£8,933	£2,217	25%
Unsecured personal loan	£11,000	£5,133	47%
HP for car	£5,059	£2,157	43%
HP for car	£6,895	£2,317	34%
Unsecured loan	£5,600	£744	13%
Secured loan	£25,000	£12,127	49%
Secured loan	£35,000	£10,150	29%
Conditional sale for car	£4,300	£2,394	56%
Unsecured personal loan	£13,000	£3,367	26%

Source Citizens Advice Bureau evidence report

The revenue from this type of revenue is massive and the incentive to make sure you end up with PPI or some other form of payment protection is even bigger.

Compensation ppi

Personal Loan Protection - (PLP)

This type of policy includes secured loans and unsecured loans and is one of the most common and most expensive forms of payment protection.

If you have a secured loan the insurance is tied to an asset, usually your home. Unsecured loan insurance does not require this kind of security.

You might have purchased loan payment protection when you signed up for a loan to buy a kitchen or a car or to consolidate your debts. You could also have purchased it as credit card payment protection when you applied for a credit card. Many people don't even know they have Personal Loan Protection (PLP) insurance.

This kind of cover can add a staggering amount to the total size of your debt. Money facts data has looked at hundreds of cases and revealed the astonishing cost of loan payment protection. On one loan of £5,000, for example, the payment protection insurance premiums totaled over 20% of the total loan.

If the costs of PLP were not made clear to you when you took out your loan, you may have a claim for miss sold loan protection.