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Changes to PPI 'will be bad news for car loan customers'

Planned changes to payment protection insurance (PPI) are bad news for people taking out car loans, the Retail Motor Industry's National Franchised Dealers Association (NFDA) has claimed.

Planned changes to payment protection insurance (PPI) are bad news for people taking out car loans, the Retail Motor Industry's National Franchised Dealers Association (NFDA) has claimed.

The Competition Commission is trying to increase fair dealing in the PPI market.

As a result, it plans to implement a 14-day cooling off period following the sale of a finance package so that customers have the opportunity to shop around for PPI.

Sue Robinson, director of NFDA, said such a move would leave dealers and people taking out car loans worse off.

In many cases, customers will forget to follow up on PPI, she claimed.

Ms Robinson added: "In the current economic climate, where many consumers are concerned about the possibility of redundancy, PPI is a crucial way of ensuring they are able ... to cover their loan payment."

Earlier this month, the Retail Motor Industry Federation called on the chancellor to help out car dealers by cutting VAT from 17.5 per cent to 12.5 per cent.


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