View more on these topics

OFT refers PPI market to Competition Commission after public consultation

The Office of Fair Trading has referred the UK Payment Protection Market to the Competition Commission for further investigation.
The decision comes after a period of public consultation following the OFT’s earlier proposal to refer the PPI market to the commission in October 2006.
During the consultation the OFT received 20 responses including businesses, consumer organisations and trade associations.
Having considered the views of respondents the OFT says it is still of the view the competition concerns it identified prior to the consultation exercise remain valid and that an investigation by the commission is now warranted.
OFT chief executive John Fingleton says: “Our examination of the evidence presented to date gives us reasonable grounds to suspect that there are features of this market which restrict competition to the detriment of consumers.
Despite some evidence of a degree of consumer satisfaction with aspects of the product, the evidence as a whole suggests consumers get a poor deal. This referral will enable the Competition Commission to undertake a thorough investigation of the market and, if necessary, ensure that appropriate remedies are put in place.”
Paymentcare.co.uk managing director Shane Craig says: “Banks and lenders have hijacked PPI as a cash cow to generate huge profits by charging consumers over-inflated premiums and it’s inevitable that the reputation of the PPI market will be further tainted by today’ OFT announcement.
It is essential consumers are made aware that there is an affordable alternative and don’t risk leaving themselves open to financial problems by eschewing PPI altogether.
The naming and shaming of High Street banks and lenders – which will be the likely result of this CC referral – is almost certain to trigger a deluge of claims for compensation from disgruntled consumers”.

Recommended

My Beautiful Wrap – Beauty and the Beast

When I was asked to write a piece on wrap, I didn’t really know what I could say but quickly realised that the only thing I could talk about that could be even slightly interesting was our experience.Around two and a half years ago, I set up Evolve as a comprehensive fee-based financial planning practice […]

Aegon warns FSA on non-confirmed guidance plans

Aegon has warned the FSA not to allow non-confirmed industry guidance to be seen as a lower standard than confirmed guidance under its plans to supplement principles.Responding to the FSA’s discussion paper on the subject, Aegon head of business regulation Steven Cameron says it must be made clear that there is an equal role for […]

Dunstan Thomas to provide systems to Friends Prov

Technology provider Dunstan Thomas will be providing systems to Friends Provident to give its new generation policyholders access to a range of income drawdown options as an alternative to standard annuity settlements at maturity.The work will also include building Dunstan Thomas’ own systems into Friends Provident’s existing new generation pensions administration platform enabling it to […]

Rate rises hit buy to let as arrears increase

The Council of Mortgage Lenders has revealed that figures for buy-to-let arrears are increasing amid concerns the sector may suffer a rise in repossessions.The CML will reveal its finalised statistics on buy-tolet arrears and repossessions next week but the early indications are that the sector may have to ride out a rocky period in the […]

1

School fees planning

Jeremy Pearson is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. Many parents value the standard of education offered by […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com