Who protects my loan?
Unsecured personal loans and secured homeowner loans of under £25,000 are governed by the Consumer Credit Act which contains strict regulations on how money is lent.

What other protection is available?
Some lenders offer insurance policies or payment protection schemes to protect you in the event of accident, illness or redundancy. These policy and schemes vary greatly and you should check with the lender what they cover.

Should I take out a policy?
Generally these products are very expensive and quite frequently you will already be covered for such eventualities elsewhere, through a works scheme for example. Often the premiums are rolled up into the loan so you end up paying interest on this additional amount. Most people pay off their loans early, therefore loan specific payment protection for them is an expensive waste of money

If you do wish to take out extra protection, you should carefully read the small print. Many of them exclude illnesses and other events that you would think you could make a claim under.

What happens if I get in trouble?
If you do have difficulty making your repayments, seek advice from your lender immediately. Do this sooner rather than later, as they will be more sympathetic. It is usually in their interests to help. For example, they may accept smaller payments until you get yourself back on your feet. Alternatively, you can seek advice from a voluntary organisation.