20 October 2006
uSwitch, the price comparison and switching website, has commented on the announcement from the OFT on the payment protection insurance (PPI) market.
It is estimated that 20 million payment protection insurance policies have been sold to borrowers with the sector worth in the region of £5.5 billion.
Recent figures from uSwitch into the true cost of PPI have found that consumers are definitely paying over the odds with some costs inflated by over 700%.
uSwitch is calling for lenders to adjust APRs to reflect the true cost of taking out credit when PPI is launched while also requesting compulsory upfront information on price and details to improve customer understanding.
Nick White, uSwitch head of personal finance, said: "It's not surprising to see that the competition commission is now involved in this investigation as the high street banks currently account for 80% of all PPI policies sold.
"This is mainly because consumers are not shopping around and looking at the standalone policies which represent much better value for money.
Make a personal loan comparison with uSwitch.com and find the personal loan best suited to your needs.
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