In its Provisional Findings Report, the Commission states that consumers are overcharged £1.4bn a year for PPI – representing a 490% return on equity for the 12 largest distributors. Typical commission rates are between 50 and 80% for Personal Loan and Credit Card PPI and 40-65% for Mortgage PPI.
The Commission concludes that because lenders know they have a monopoly in selling PPI at the time of the loan application, they charge high prices at the expense of the consumer.
In a bid to reduce
- One Broker buys Gibbs Denley Insurance Services
- Profits soar at Bollington in 2016
- Gadget insurance aggregator launched
- Bennett Christmas buys Horsham-based Slade Edwards Insurance
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