Further investigations gather momentum
- 22ND JUNE 2007
The ongoing investigation into payment protection insurance has been one of the very few investigations to actually span across three different agencies at the same time, and this has in turn rocked the financial industry to its very core.
In February 2007, the Office of Fair Trading passed the investigation on to the Competition Commission after receiving it from the Financial Services Authority some time ago.
The industry is split as a result, with some individuals believing that the referral onwards has not come a moment too soon with others being set against the move.
Payment protection insurance is supposed to give individuals peace of mind that their debts are taken care of should anything happen to them but, for some individuals, this is most definitely not the case. The high street providers offering loans and credit cards dominate the market. They sell the product alongside their loans, mortgages and credit cards, very often implying to the consumer that if they don’t buy the protection, they will not get accepted for the borrowing.
Thus they can charge what they like to individuals looking for that peace of mind, hence the referral to the Competition Commission.
There are other payment protection insurance providers out there that do look after consumer wants and needs such as the ethical specialist providers, British Insurance. Simon Burgess, Managing Director of British Insurance, has welcomed the referral wholeheartedly because it means that if the market is over hauled, consumers will get a choice and thus a better deal in the future.
