Autumn could see the first competition commission statement
- 26TH MAY 2007
The Competition Commission has been looking into the sad state of affairs that the payment protection insurance (PPI) sector has gotten themselves into and the Autumn could see the first statement from them on their findings.
The investigation into the sector is due to be completed by February 2009; however the Competition Commission believes that it will finish ahead of schedule. Due to this they have announced that they expect to be able to publish the “emerging thinking” document sometime during this autumn.
Among the complaints against the sector, it was found that premiums are very high which are made up mainly from huge commissions. In fact, it is widely accepted within the industry that consumers could save around £1 billion every year if there were more competition in the sector.
However the Commission hasn’t as yet said they have identified any concerns when it comes to competition.
When sold correctly payment protection insurance can be worthwhile, providing a safeguard for your monthly repayments if you should become out of work due to accident, sickness or redundancy. However a vast majority of policies have been mis-sold which means the consumer cannot possible hope to claim on them.
Other factors which have been looked at is the lack of information about the product, and the inclusion of it without first asking the consumer, leading them to believe it had to be purchased alongside the loan or credit card.
For good advice and a sound policy visit the ethical and independent provider British Insurance. British Insurance is a standalone provider who is headed up by the staunch campaigner of the consumers’ rights when it comes to buying payment protection insurance, Simon Burgess.
