People overcharged by Payment Protection Insurance providers

Tue, 10 Jun 2008

A new report by the Competition Commission has revealed that people who buy Payment Protection Insurance (PPI) are being overcharged by £1.4 billion a year.

The Commission said that the principle reason for the overcharging was a lack of competition as PPI policies are usually sold at the same time with the loans they are taken out to protect. As a result of this, the Commission is looking to ban the sale of PPI alongside the associated credit product to see whether this will improve the competition among PPI providers and therefore lower prices .

Competition Commission's deputy chairman, Peter Davis, said: "The way PPI is sold as an 'add-on' to a loan or other credit product means distributors escape the pressure they should face from competing suppliers. Distributors don't appear to compete much with each other on either price or quality of PPI; neither do they appear to do much direct advertising of PPI to win customers from each other."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Save money on your mortgageSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.

Health cover, life insurance and PMIProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.