Strict New Guidlines Follow PPI Mis-Selling
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…