Quote Originally Posted by humvee View Post
It is kind of surprising that defaults on payment protect loans is higher, as I would have thought a number of the causes of defaults on normal loans should not cause a default - but should instead cause a claim against payment protect on loans with payment protect
But payment protect is a prime example of adverse selection bias. Those that have good stable jobs and are confident of their ability to pay don't get PP, while those that know work has been a bit slow lately etc do get PP.