Internal ethics are very different

I am saddened to find that the Co-operative Insurance Society and its sister-organisation, the Co-op Bank, seems not to be following its own ethical policies.

The Co-op's ethical engagement policy states: "companies that we invest in take their environmental responsibilities seriously or do not engage in exploitative practices."

While this may be true for companies associated with the Co-op, I am concerned this is not the case for the organisation itself.

In February, Defaqto compared the cost of payment protection insurance from a number of lenders for a £5,000 loan over four years with an assumed monthly repayment of £150.

The cheapest cover from shelter.co.uk was £7.50 per month, adding £360 per year to the loan cost.

I was pleased to see that the Co-op was more competitive than other lenders, but its £25.92 monthly premium still adds a further payment of £1244 per year.

Given its ethical stance, how can the Co-op justify charging consumers this much?

Its policy may wax lyrically about 'consumer protection', but its pricing structure is more exploitative than protective. Does the Co-op really practise what it preaches?

Simon Burgess, Managing director,

britishinsurance.com.