Competition commission looking at PPI
October 4th, 2008 | by abigail |If you’ve ever taken out any loans or credit cards, chances are they tried to sell you Payment Protection Insurance at the same time. The competition commission is looking into and considering banning this practice.
Payment Protection Insurance is meant to cover your commitments if you can’t continue repayments because of ilness or unemployment.
PPI is a big profit maker for the banks, the average cost of PPI on a Ten Thousand Pound Loan is Four Thousand Pounds. Because of PPI’s profitability bank staff earn big commisions and are heavily targetted for selling it, they are legally required to give you 2 Prices, 1 with PPI and 1 without, this practice does’nt always happen.
Many first time or less informed borrowers may even feel pressurised into buying PPI for fear they won’t get the loan if they don’t, PPI is however something to consider espescially in these times of the credit crunch but much better deals can usually be found if you shop around.
It is possible to Reclaim PPI.