The Office of Fair Trading’s decision to refer the payment protection insurance (PPI) market to the Competition Commission (CC) for further investigation is a positive initiative, delivering a much-needed wake up call to High Street lenders,” says independent PPI provider.
Paymentcare.co.uk managing director Shane Craig a comments, “Banks and lenders have hijacked PPI as a cash cow to generate huge profits by charging consumers over-inflated premiums. The announcement by the OFT underlines the fact that consumers get a poor deal, a situation which is exacerbated by the acknowledged lack of competition. But genuine low-cost insurance is important for millions of people with borrowing commitments. It is essential that consumers are made aware that there is an affordable alternative and that PPI doesn’t have to be bought along with a loan, store or credit card. People no longer believe they have to buy travel insurance along with the holiday for example – they go online and find a great deal – well, PPI is just the same. People have been paying way over the odds for policies that may have been useless in the event of a claim.”
Paymentcare.co.uk has long campaigned for the Office of Fair Trading move, and has been involved in discussions with the watchdog for many months.
Customers can apply online for instant cover at Paymentcare.
As an online provider of payment protection insurance solutions, Paymentcare.co.uk provides loan PPI at only £3.95 per £100 of cover for full ASU cover and what they claim is the UK’s lowest priced stand-alone credit card PPI. Both offer payments to claimants on a back to day one basis.
Payment protection insurance : News update: February 2007