(1888PressRelease)
November 24, 2007 - London (shakespearefinance) : The Competition Commission will accept responses from the interested parties on payment protection insurance till 27th of November 2007. Its inquiry team expects to publish its provisional findings in May 2008.
The Competition Commission’s inquiry chairman Peter Davis said that there were some areas that required further exploration regarding payment protection insurance fee. The Commission has evidence that shows that the insurance policy is sometimes more expensive than the interest paid on the loan itself.
Davis said: "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."
There have been many reports on mis-selling of PPIs by the lenders. Many consumer groups have widely criticised it as being expensive and offering limited benefits to the borrowers. Payment protection insurance or loan insurance covers repayments on personal loans, secured loans and mortgages. If during the policy, a borrower fails to repay instalments, the insurer will have to maintain the repayments. PPI applies in case of loss of earnings, sickness, unemployment or accident.
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