Strict New Guidlines Follow PPI Mis-Selling

29 January 2009

We’ve had a lot of silliness on Bitterwallet so far today but there’s a time and a place for real consumer news. That time is NOW so strap yourselves in folks.

The Competition Commission have announced new restrictions on the selling of payment protection insurance to be implemented from 2010.  The selling of PPI alongside credit such as loans and credit cards will be banned as it gives the loan provider an unfair advantage.

Research has shown that many consumers don’t realise that PPI can be purchased elsewhere independently and feel pressured into forking out for it as they sign up for their credit agreement.

The report suggested that credit companies are cashing in by being able to offer PPI cover at the point of sale and that competition suffered as a result, leading to higher prices for the consumer.

Additionally, the sale of single premium PPI policies will also be banned. That’s when the whole cost for the entire term of the policy is paid upfront, usually added on to the debt itself.

More info and background at This Is Money, who have been campaigning against the mis-selling of PPI since 2002.

Right, that feels better. There'll be some fresh silliness along shortly…

TOPICS:   Debt   Consumer Advice   Scams

4 comments

  • Fred C.
    Would it be more useful to bring legislation to make banks and financial companies to pay payment protection insurance to the government for doing business in UK so as to protect the banks from the people having to pay for their inability to pay and needin rescue?
  • Jerry M.
    If the goverment was make banks pay PPI to the Goverment then the banks would not stay in the UK and continue to do business in the UK then what would we do. Why do you think the goverment have ploughed so much money in the UK banks? This is so the UK can stay in complete control of the financial sector and not have to rely on other countrys descions and be held to ransom.
  • Callum
    I don't agree with the banks having to pay PPI, but if that was the case, I'm pretty sure they wouldn't just shut down in Britain - they make a lot of money here (if anything, they will just increase prices etc.).
  • Fred C.
    No fear , we and the government already own most of the major UK banks. They cannot run away now. Likewise the Bank of England cannot run to China , can it?!

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