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More PPI investigation needed, says Commission
15 October 2008 15:48
The Competition Commission (CC) has called for further views on the findings of its ongoing investigation into the payment protection insurance (PPI) industry.
The CC's analysis into the industry has so far found that there is a lack of competition in PPI plans, which is reflected onto the high price borrowers are paying for credit protection.
In the last financial year, there has been a substantial increase in the volume of complaints being filed with the Financial Ombudsman Service (FOS), which investigates consumer issues in the sector.
The CC commented that it would be consulting with interested parties before making any final decision.
Retailers of PPI schemes had recently told the CC that any forced reductions in PPI prices would result in a rise in credit prices and even an increase in credit acceptance cut-off scores.
PPI plans cover borrowers in the event they fall into arrears on their payments due to mitigating circumstances such as illness or redundancy.
The FSA.gov.uk">Financial Services Authority recently fined Alliance and Leicester £7 million for miss-selling its PPI schemes.
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