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THE AVERAGE saving made by customers choosing payment protection insurance (PPI) from independent provider than their lender is a whopping £2,739.77*, an in-house survey has revealed.

Policy holders who responded to an email survey carried out over the past year have confirmed just how much profit high street lenders are making from selling their own over-priced PPI policies along with loans and credit cards.

“Our customers have always been eager to tell us how much they have saved by coming to us,” said director Shane Craig. “Having looked at both options, they know that our stand-alone monthly paid policies offer great value for money compared to the single premium option offered by their lender.

“They are only too happy to speak up so that other consumers are made aware that there is no need to pay thousands of pounds over the odds for protection on top of their borrowing.”

As an average saving, £2,739.77 is a considerable sum but this is, of course, an average - some customers have saved as much as £5,000.

For consumers who find they need to borrow money, having to stump up such sums in addition for PPI can only compound their financial problems.

“It’s blindingly obvious who benefits most from High Street lenders’ PPI policies – and it’s not the customers,” said Craig.

A recent review of current insurance selling and administration processes** by City watchdog the Financial Services Authority (FSA) concluded that a significant number of consumers are still losing out when purchasing PPI.

“Although we applaud the industry campaigns to put a stop to the mis-selling of PPI, the February 2009 deadline for the Competition Commission’s findings of their current investigation is a long way off,“ added Craig.

“There’s still plenty of time for thousands more consumers to feather their lender’s nest with unnecessary sums – unless they are made aware that there is an alternative.”

Potential savings will, of course, be dependant on individual circumstances.

* Average saving of customers who stated their savings in response to an email survey during the course of 2006.
** Insurance Selling and Administration – Proposed amendments to the Insurance: Conduct of Business sourcebook – Financial Services Authority June 2007