The ethics of the Co-op and its bank are being questioned after financial researchers Defaqto compared the cost with other lenders.
During its recent investigation into the state of the payment protection market, Defaqto asked lenders to quote their PPI charges for a £5,000 loan over four years with an assumed monthly repayment of £150. Whilst the Co-op was one of the more reasonable providers, its monthly premium of £25.92 was still higher than the £6.00 per month offered by britishinsurance.com
Consumers taking out cover with the Co-op would have to pay £1244 per year as opposed to britishinsurance.com’s£285. The Co-op’s Ethical Engagement Policy states ‘companies that we invest in take their environmental responsibilities seriously or do not engage in exploitative practices’.
Simon Burgess,managing director of britishinsurance.com, said: “It saddens me that the Co-op is comfortable charging these excessive rates.Its policies may wax lyrically about consumer protection, but its pricing structure is more exploitative than protective.”
