6 June 2008
People are being overcharged for their loan protection policies, according to new comments made by the Competition Commission.
Such loans may be capped in the future, the body warned, as it attempts to stop a trend of people being ripped off in this arena.
Individuals who are trying to give themselves an element of cover for illness on items such as credit cards and loans via personal protection insurance (PPI) are paying over the odds, it found.
Deputy Chairman at the commission Peter Davis stated that something needs to be done to improve the situation sooner rather than later.
"We've found serious problems with the PPI market and consumers are paying for the lack of competition," he commented.
He added that little advertising is carried out by providers so that it is difficult for consumers to switch.
A new payment protection product was recently unveiled by LV=, which attempts to offer support for customers.