Take PPI away from credit providers says British Insurance
The Competition Commission’s latest Report recommending measures to prevent consumers being ripped off by lenders selling Payment Protection Insurance is lightweight and will not protect against exploitation, said Simon Burgess from independent PPI provider, British Insurance.
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
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