PPI still under investigation
November 29, 2007
Over the past year PPI, or Payment Protection Insurance, has hit the financial headlines on many occasions, after it was found that many lenders were mis-selling PPI.
Lenders were accused of selling this insurance to those that could never benefit from it, forcing consumers to purchase PPI by making out that they would not get finance without it, and even adding PPI to finance deals without the knowledge of the consumer. PPI can be very costly, and those found guilty of this type of mis-selling have been slated by regulators and campaigners.
The sale of PPI has been under investigation by the Competition Commission for some time, but officials from the Competition Commission have stated that investigations are not yet complete, as there are a number of complex issues that have to be considered in the review of PPI sales. After stating that additional time and consideration is needed in this investigation officials from the Competition Commission have stated that provision finding should be available in may of 2008.
The chairman of the Competition Commission stated: “We are far from making up our minds. But we are focussing on the amount of competition for PPI that distributors face at the retail level.”
He also said that there were many areas that warranted additional consideration and research, and whilst officials wanted to complete the investigation as early on as possible they had to invest the time and consideration needed.
He added: “…we are also conscious that the issues we are deciding upon are by no means simple and it is vital that we carry out our work thoroughly, ensuring that all parties receive a fair hearing.”
PPI is designed to cover repayments on loans, credit cards, and other forms of finance for a specified period in the even that the borrower cannot make repayments for a while due to sickness, accidents, or redundancy.
Alan Wright
29th November 2007
Recent additions:
- HIPs may be affecting the housing market estate agents
- Customer receives compensation from HSBC
- More jobs being created at Nationwide
- Building society deposits rocket
- Interest rates stay on hold at 5.75%
Related Articles
- Investigation into energy firms begins An investigation into whether there are competition issues amongst the UK's major energy suppliers has now been launched by the energy regulator Ofgem. The regulator
- More consumers switching energy suppliers According to recent reports from the energy regulator Ofgem an increasing number of people in the UK are now switching energy suppliers in a bid
- Stockbroker fined by financial regulator A stockbroker in the UK has been fined by the Financial Services Authority after being found guilty of selling risk shares to elderly and inexperienced
- Payment Protection Insurance sales halted by Nationwide Officials from the largest building society in Britain, the Nationwide, have admitted that the staff are not performing properly when it comes to the sale
- Hidden charges on broadband to be looked into in 2008 According to a recent report officials from the communications regulator Ofcom will be launching an investigation into hidden fees and charges next year from broadband
Comments
Got something to say?