The probe into payment protection insurance
- 3RD MAY 2007
The Office of Fair Trading announced an investigation into the mortgage payment protection industry (MPPI) in early February this year in addition to the ongoing probe into the payment protection insurance (PPI) industry as a whole.
This was a direct response to consumer confusion, even though the mis-selling of mortgage payment protection insurance wasn’t thought to be as widespread as its loan and credit card cousins.
There had been a degree of consumer satisfaction with existing payment protection insurance policies but the lack of information available about payment protection insurance as well as the high prices and poor claims procedure resulted in it being deemed of bad value to consumers overall.
The probe into payment protection insurance went further still with the news that the Competition Commission would also be looking into it in relation to the financial industry in general with the investigation anticipated to take around 18 month to complete.
Early reports suggest that consumers had little access to information about the range of companies offering payment protection insurance and mortgage payment protection insurance and thus consumers were restricted in their choice of policy and often overpaid for mediocre and often unsuitable cover.
Many were also felt that they were coerced in to buying this cover and were unaware that it is not a compulsory product and that it can often be bought cheaper from a standalone provider.
Independent payment protection provider British Insurance is just one of the companies offering a low cost, good quality standalone alternative to the policies offered by lenders.
The monthly premium for their income payment protection insurance is around 80% cheaper than high street alternatives and offers good value for money in that it offers additional benefits not available with some of the mainstream providers.
