Which? says two million payment protection polcies have been mis-sold.
Mis-selling of payment protection insurance (PPI) is more common than previously thought, with as many as two million policies having been sold to consumers who may not be eligible for cover, consumer watchodg Which? has claimed.
After surveying 579 people who had taken out a loan during the past five years, the consumer body found that 32% had also purchased PPI. Of those, it said that a further 32% could struggle if they tried to make a claim due to significant policy exclusions.
With approximately six million such policies in effect, Which? believes the PPI industry is in need of an overhaul.
Doug Taylor, personal finance campaigner for Which?, said: “We’ve always known that people were being mis-sold PPI, but we were still amazed to discover the scale of it. It appears that salespeople are chasing their commissions, and their bosses are chasing profits. Where's the sense of responsibility to the customer?”
Which? research also found that the overall average loan is £6,000, with repayments mounting to £200 or more a month. But 10% of people did not know whether their loan was secured or unsecured.