Loan rates on the rise
- 7TH JUNE 2007
With the investigation into the payment protection insurance (PPI) sector now in the hands of the Competition Commission, the high street banks are in a state of panic. Why? Well because previously they were raking in huge profits from selling their payment protection insurance.
However with the media highlighting how many policies have been and still are being mis-sold and grossly overpriced it is thought then one thing to come out of the investigation will be lower priced insurance and more competition when it comes to selling.
The question is, are the banks going to just take this and put their tail between their legs and walk away losing millions every year in profit?
It doesn’t look like it and one way in which it is thought that they will recoup lost profits is by making the consumer pay to use their current account. It seems that free banking in the UK could quickly disappear in as little as two years.
Along with this the interest rates on loans are thought to be rising to help counter the loss. It is ironic that what started this in the first place, payment protection insurance, will now be needed more than ever as people struggle to cope financially.
It’s not all black however, not if you go to British Insurance for your payment protection policy, Simon Burgess at British Insurance speaks very openly when it comes the consumer getting the short end of the stick. British Insurance are a specialist payment protection provider who can save you as up to 80% on your premium while selling you a quality product.
