Greedy banks get even greedier
- 3RD JUNE 2007
The world of finance is in deep trouble and in particular the payment protection insurance (PPI) sector. With the recent and still ongoing investigations into the sector by the Financial Services Authority and the Competition Commission, confidence in the protection and some financial institutions is at an all time low.
Payment protection insurance is sold to cover the monthly outgoings of such as loans and credit cards and will usually pay out for up to one year should you find yourself unable to work due to accident, prolonged sickness or unexpected unemployment.
However with the intervention of the Financial Services Authority and the introduction of tighter rules, banks and lenders stand to suffer and lose huge profits which they previously made through selling expensive payment protection insurance.
In order to combat this it is thought that banks and lenders are going to start charging to use a current account with them. Along with this they are likely to continue raising the rate of interest on loans, which has already started happening.
The majority of people however don't realise when then take out a credit card or loan that they can buy the cover for it independently. The banks of course don't make this known as they want to sell their policies for the big profits.
Payment protection insurance is without a doubt a good thing to have and fortunately there are still some "good guys" in the sector. British Insurance is one such company. They can save you up to 80% on a policy while providing a quality product.
