Millions continue to overpay
- 12TH MAY 2007
While the Competition Commission continues to investigate the payment protection insurance (PPI) industry, millions of consumers are still paying too much for their premiums says independent specialist payment protection insurer British Insurance.
British Insurance's managing director Simon Burgess has said that the Commission must start "moving more quickly" in its investigation in order to stop the “mass profiteering” by the lenders and banks. .
In February this year and following its own investigations, the Office of Fair Trading referred the payment protection insurance market to the Competition Commission. The OFT’s review of the sector showed an industry rife with over priced policies and mis-sold policies.
It, along with the Financial Services Authority, found that many providers were failing to make it clear to customers that the product was not compulsory and that they could shop around for cover if they wished to take it
Simon said that the Commission's self-imposed deadline of February 2009 for conclusion of their review was "unacceptable" citing that as all the investigations had that had been previously carried out by the OFT and the FSA pointed to the same issues that needing to be addressed.
“Why re-invent the wheel?” commented Simon “Surely it would be better for the consumers if the Commission looked at implementing remedial measures now based on the past findings”.
He said that the failings within the payment protection insurance sector were basically the issues of over pricing and the lack of information available to the consumers when buying, which often resulted in mis-sold policies.
“Until the Commission start taking positive action, millions of consumers will continue to overpay on their payment protection insurance” he fumed.
