PPI Ban Is Devastating News For Borrowers Says ABI
Thursday 13 November 2008
The provisional decision to ban the sale of Payment Protection Insurance (PPI) by the Competition Commission is devastating news for borrowers according to ABI. The ban will prevent PPI policies being sold when consumers take on extra financial responsibilities, which will leave them unprotected in the event of being made unemployed.
This is particularly worrying following the announcement of a 69% increase in recently unemployed customers claiming on their policies.
This ban will ultimately prevent borrowers from getting the financial protection they need in a straight forward manner, in an economic climate that is unstable to say the least.
In response to the news, the ABI’s Director of General Insurance and Health Nick Starling said that “This is devastating news for consumers” and that “the Competition Commission has got this completely wrong”.
Although this announcement has come as a shock to many, in reality the Competition Commission still has the opportunity to rethink this proposal before January.
Many people believe that there is still a place for Payment Protection Insurance Policies, despite the poor practises and mis-selling which has plagues it’s past.
Killing the PPI market dead will leave many people without protection, which could prove disastrous to the well being of many families.