Loan and payment protection

When applying for a loan I was told I was accepted on the basis that I
took out a payment protection policy due to my lack of substantial
savings or life insurance.
Are they allowed to impose that?
Reply to
fishman
Yes. It's a rip-off, but if you want the loan that badly they've got you over a barrel. They may well waive it but then charge you a much greater interest rate instead.
Putrid poetry, dismal doggerel, extrava-stanzas...
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Reply to
Tiddy Ogg
This does not add up - the main reason most people need a loan is bacause the *don't* have much in the way of savings!
Reply to
Adrian Boliston
In message , fishman writes
I wouldnt have thought so. Are you applying directly to the lender, or via a broker - There are a lot of sharks amongst brokers, so there is every chance that they are pulling a fast one.
You could try asking for a copy of the lenders offer documentation to see what it says.
Reply to
Richard Faulkner
If it is a commercial, and hence unregulated, loan then yes, they can.
I think I recall some clause in the ICOB regulations that means that for sub 25K personal lending the lender cannot impose restrictions on securitisable bank assurances for lending sanction...
Ie if you wanted a 19K loan they cannot INSIST on you taking THEIR policy but can ask you to take out sufficient life cover without them taking a charge on it... something like that anyway
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