Paymentcare has welcomed the announcement by The Office of Fair Trading that it will be launching a probe into the selling of Payment Protection Insurance.
Shane Craig, managing director of Paymentcare, says: We have long campaigned for an OFT investigation into the selling of PPI by the major High Street providers.
Consumers have for far too long been ripped off by banks and lenders. Vincent Cable, the LibDem shadow chancellor, has lent his support to our campaign, and we are delighted that the OFT has finally decided to examine the market.
The study, which is the outcome of the OFT’s consideration of a recent super-complaint from Citizens Advice will be launched early in 2006.
PPI is applied to a number of credit products including mortgages, loans, credit and store cards, and protects a borrower’s ability to pay the loan in case of accident, sickness or unemployment. Around 6.5 to 7.5 million policies are taken out each year and it was estimated in 2003 that 5.4bn in premiums was generated.