15 million payment protection insurance policies sold in just two years
- 5TH MAY 2007
In the last two years, around 15 million payment protection insurance (PPI) policies have been sold, raking in more than £11bn. And around £10bn of this is pure profit, which is a disgrace says Simon Burgess, industry expert and MD of standalone payment protection insurance provider British Insurance.
“Greedy lenders and banks are simply cashing in on peoples’ vulnerability and charging them ludicrous premiums for policies that are not always even suitable” says Burgess.
The issue of premium price variation is just one of the things that the Competition Commission is currently looking at as part of it review of the whole of the payment protection insurance sector.
Certainly, research carried out by British Insurance shows how much lenders are lining their pockets, with the average cost per £100 worth of loan payment protection insurance from the major lenders and banks costing £22.06 compared to just £4.00 for the same cover from British Insurance.
Many consumers when taking out payment protection insurance are unaware that they can shop around for cover. Many are led to believe that when taking out a loan, credit card or mortgage, the cover is compulsory. This is not so and is all part o the clever sales patter that ensures that these financial organisations continue to rake in massive profits.
You can shop around for payment protection insurance cover and buying it from a standalone provider such as British Insurance can save you literally hundreds of pounds in premiums over the term of the policy whilst giving you good quality protection against financial distress should you become unable to work.
In the meantime, Burgess urges anyone who believes that they have been mis-sold a policy to contact their provider. And if that fails, he recommends that you take up the issue with the Financial Ombudsman Service (FOS) who have already settled some compensation claims successfully.
