Burgesses has launched a monthly loan protection policy to combat loan companies profiting from charging large premiums.

Burgesses said major lenders are “breaching FSA rules” by using mis-leading sales techniques to encourage borrowers to sign up to “expensive front loaded loan protection cover.”

The cover it is launching, it said, could be as much as 80% cheaper than that on offer by loan companies. It would also offer back to day one cover instead of a 60 day excess which is usually provided by companies.

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