View more on these topics

Lib Dems call for PPI sales review

An urgent review into the sale of payment protection insurance is being called for by Liberal Democrat shadow Chancellor Vincent Cable.

This follows claims that industry regulator the General Insurance Standards Council is failing in its duty to protect policyholders by ignoring excessive commissions charged by brokers and other intermediaries selling these products.

Cable says: “There is clearly a serious consumer scam operating in the payments protection insurance market. The big banks and a small number of specialist brokers are taking advantage of weak rules which do not require disclosure of commissions to charge outrageous premiums.”

He has asked the Office of Fair Trading to investigate, calling the practice &#39anti-competitive abuse&#39.

The most common form of PPI is designed to cover payments if mortgage borrowers lose their jobs through redundancy or illness. The cost of PPI on an average personal loan can easily double the total interest pay-able. Lenders are making a staggering £10m a day in premiums.

The GISC has also been accused of ignoring overcharging by member firms and even of being complicit in the rip-off as it stands to gain through increased levies from members selling this insurance – an allegation it strenuously denies.


Regulation could boost equity release market

The number of people over 55 who would consider equity release under regulation has doubled in the past year, says Prudential Equity Release. Survey results suggest that 46% of those over 55 who have a mortgage or own their home would be more likely to consider equity release if the market was regulated. Half of […]

Moneyfacts launches e-commerce portal

Moneyfacts has expanded its operations with the launch of an e-commerce portal for financial advisers, eMoneyfacts. For the cost of a current year&#39s subscription to Moneyfacts magazine, eMoneyfacts combines the best features of printed publications and online services to deliver assistance to those advising on mortgages, savings, protection, credit cards and loans. Features includes ePages, […]

Long-term benefits of IT investment

Last year saw a flurry of activity as opportunistic lenders and product providers took advantage of the fact that the rapidly growing protection market was non-regulated by investing in e-commerce solutions to automate the sale of non-regulated products. But in 2004 the mortgage market has a new priority and is faced with a serious deadline. […]

£449m spent daily on homes last year

Clear Cut Mortgages has revealed that people in England and Wales spent an average of £449m every day on new homes in 2003, with 2,890 houses changing hands daily. This equates to a total of £164bn spent on 1,054,936 new homes. The company says it expects spending levels in 2004 to be broadly similar to […]


News and expert analysis straight to your inbox

Sign up