Shane Craig, of independent payment protection insurance provider Paymentcare.co.uk, praises the Competition Commission for the proposed ban on single-premium PPI policies - describing them as a major obstruction to consumers getting a fair deal, "At last, borrowers will be protected by the Competition Commission’s decision from being unfairly treated. The next step on this long and winding road is for them to be made aware that they have the choice to buy PPI from an independent source. Now that this major hurdle has been cleared the next crucial message to get across to borrowers is that PPI is, and always has been, an essential product."
A survey conducted by Paymentcare.co.uk last year revealed that, on average, customers had saved over £2,700 by choosing the independent provider’s PPI instead of their lender’s.
Shane Craig adds, “Lenders’ ability to sell their own PPI at the same time as a loan has been one of the single most unfair financial practices of recent years and has cost consumers billions of pounds. Borrowers who wanted protection for their loans but didn’t take it because they couldn’t afford their lender’s premiums and didn’t realise there was an affordable independent alternative, have suffered. Those who subsequently lost their income and fell into arrears as a result will have suffered unnecessarily, some possibly on a major scale.”
Income protection insurance: News update: November 2008