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 Banks face crackdown on payment protection insuranceExpatriate Medical Insurance news about Medical Insurance, Health Insurance, Health Care Insurance, Expatriate Health Insurance, Affordable Health Insurance, Cheap Health Insurance.  Banks and other lenders could face compensation claims, caps or even a total ban on merchandising payment protection insurance after the Competition Commission has said that they have been pickings advantage of their client. According to the committee, 14 million loan, recognition card and mortgage customers have been taken for a ride by their bank or loaner, which have charged them an estimated £1.4billion for insurance to cover their repayments in the case that they were struck by unwellness, accident or unemployment. The committee found that a lack of competition has led to higher prices and less pick for consumers. It also found that it is difficult for client to comparison policies or electric switch to a good deal, that lenders have told them wrongly that they have to buy the insurance in order to get the loan, and that some companies have subsidised attractive rates on recognition with higher insurance insurance premium. Consumer campaigners have argued that mis-sold payment protection insurance has pushed many people into poorness, and that the policies are riddled with clauses and exclusions which make it impossible for many client to claim. Sales staff have been under pressure level to push the insurance as the lenders have been profiting handsomely from the policies, but the competition watchdog's study on the industry could see them forced to place a price cap on the insurance, or to implement more transparence. Consumer grouping have suggested that the study into the missold loan insurance could spark a consumer revenge motion, similar to the one which has seen client reclaim unfair bank complaint in their one thousand. However, banking industry experts have warned that companies could take action to recoup losses if such a flood of compensation claims occurs, by further increasing the cost of consumer credit. St. Martin Lewis, godhead of consumer revenge website MoneySavingExpert.com said that "It’s great to see a big beast like the Competition Commission getting its teeth into the PPI market. We’ve seen so many consumers have money ripped out of their pockets. PPI is big business, when you get a loan, the lender is usually making more money from the insurance than the loan. Yet as it's hidden in the repayments, people don’t realise they’re paying £1,000s over the loan's life." “The entire loan insurance market has huge systemic problems; I wouldn’t be surprised if half the 20 million PPI policies in the UK had been missold and would urge anyone who has got a loan in the last six years to check whether they’ve got one of these policies and if they have, whether they were missold on it.” © Fair Investment Company Ltd More Expatriate Medical Insurance News |