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Guides

Personal Loans and Compulsory PPI

It seems that there are a number of scams that are taking place in the UK by companies pretending to be a personal loan lender and offering small loans to businesses. For example, one common telephone number reported is:

01614080830 (see a Who Calls me report on that number)

It seems that they are asking for Payment Protection Insurance deposits BEFORE they give you a loan.

If that happens to you, please be aware!

  1. PPI is never compulsory, and should only be an optional product. If you are told you cant get a loan without PPI, then that is mis-selling.
  2.  You should never pay for PPI or any other loan fees until and unless you have seen some paperwork. If you do get paper work, check the companies background. WARNING: Some scammers are giving legitimate company names when carrying out this scam. Google the company and call them on their official 0800 number to verify they are real.
  3. You should never have to pay for any fees upfront when taking out a personal loan.

Please be careful when paying for PPI – always remember – it should be your choice, and your choice only to take Payment protection Insurance.

If in any doubt, contact the financial Ombudsman. For Spam contact about PPI claims or loans, contact the Information Commissioners Office.

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Further Help

Citizens Advice Bureau

Citizens Advice Bureaux give free, confidential, impartial and independent advice to help you solve problems. To find your nearest CAB, including those that give advice by e-mail, search for your nearest CAB, or look under C in your phone book.

Financial Ombudsman

Consumers may prefer to contact the financial Ombudsman consumer helpline on 0300 123 9 123 for guidance on the procedure for complaining about payment protection insurance (PPI).