Why the referral?
- 4TH JUNE 2007
Earlier this year, the Office of Fair Trading confirmed that it was passing the investigation into the payment protection insurance (PPI) sector onto the government body the Competition Commission. This investigation is expected to complete around February 2009 with interim reports along the way.
So why the referral and what is payment protection insurance? payment protection insurance is taken out to safeguard the monthly repayments of credit cards, mortgages and loans should the policyholder become ill through accident, prolonged sickness or unforeseen redundancy. However, the sector has attracted a lot of negative coverage in the media which sparked off investigations by the OFT, the Financial Services Authority and the Citizen’s Advice.
These investigations all came to the same conclusion, that many policies had been mis-sold and that the consumer was getting very poor value for money.
There are many things that these organisations want to see change about the sector, with the main two being that the product is easier for the consumer to understand along with fairer priced premiums. The referral to the Commission should make significant and positive changes to the market place.
Competition in the sector is almost nonexistent with the high street banks and lenders having the stranglehold and making huge profits to the detriment of the consumer. However payment protection insurance can be bought independently – which many consumers are unaware of - and one such independent and ethical company is British Insurance.
British insurance is headed by peoples’ champion Simon Burgess who is always favours the consumer over making huge profits. He proves this by offering quality insurance products while keeping the premiums as low as possible.
