Payment protection - AAARRRGGHHHH!
Discussion
Trying to get a better loan rate because I'm unhappy with the service provided by a certain lender whose name rhymes with Malvern Cock and they are SO persistent with trying to flog me payment protection! The guy I'm currently on the phone to has required me to say "I don't want payment protection" in about 15 different ways so far. Grrrrr!
It's not just a profit thing but new FSA regulations mean we have to say it and say it again get you to sign to say you don't want it!!!!! aaaaaarrrrrggggghhhh from me too 
Atleast when you lose your job or get runover even if your car is nicked you can't blame me for not offering it!!
Atleast when you lose your job or get runover even if your car is nicked you can't blame me for not offering it!!
He's obviously a crap salesman
When I was younger working in a TV rental/retail store, my PP sales were 2-3 times higher than anyone else on the sales team. (brag mode brag mode 
) People would come into the store carrying their TV's wanting to terminate their contracts... Id send them out the doors not only with their TV's, but renegotiated contracts for other new goods they had no intention on renting, with PP on every item
"Ive told you twice. Dont be tedious. I know you're on commission but the answer is no mate" will do the trick.
When I was younger working in a TV rental/retail store, my PP sales were 2-3 times higher than anyone else on the sales team. (brag mode brag mode ) People would come into the store carrying their TV's wanting to terminate their contracts... Id send them out the doors not only with their TV's, but renegotiated contracts for other new goods they had no intention on renting, with PP on every item "Ive told you twice. Dont be tedious. I know you're on commission but the answer is no mate" will do the trick.
toni896 said:
prob coz thats where they make most profit - insurance !
Partly right, the commission this type of product generates, (along with admin/arrangement fees, gap cover etc )gives many lenders up front income which helps provide the cashflow to cover the day to day business costs. The income/profit from lending the money (interest) only trickles in as the loan is repaid.
As margins get tighter "up front income" becomes more important.
The actual cost of the insurance product to the finance company is miniscule and they add huge margins to this base cost to generate large commissions.
If you are considering any product of this type do not purchase through the lender without first checking the cost with an independent insurance broker.
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