In a bid to entice more customers to sign up for its payment protection insurance offering LoanCare, Nationwide Building Society has introduced a cashback offer for new borrowers.

LoanCare is Nationwide’s payment protection insurance (PPI) for personal loans. It offers cover against accident, sickness, unemployment and death. As part of the new cashback offer, anyone taking out a personal loan with LoanCare insurance between October 2, 2006 and November 30, 2006 will qualify for cashback of 20% of their insurance premium at the end of their loan term. Nationwide said that, for some customers, this could amount to over GBP290.

Customers taking LoanCare during the offer period will not only benefit from one of the lowest payment protection premiums available, peace of mind and comprehensive cover but will also get the added bonus of a lump sum back at the end of the loan, commented Rudolf Heaf, managing director of Nationwide Trust Ltd. It’s effectively a ‘no claims discount’ for our LoanCare customers.

PPI offerings have come under fire in the UK recently, with accusations of mis-selling being leveled at financial institutions and some consumer groups branding the product as a waste of money for many consumers.