PPI problem still rife

According to consumer campaign officials the problem with payment protection insurance cover is still rife in the UK, despite a crackdown on the mis-selling of this cover over the past couple of years.

Officials from the Office of Fair Trading, the Competition Commission, and the consumer campaign group, Which? have stated that they had not realised just how bad the problem still was.

It is estimated that around six million consumers have taken out payment protection insurance over the past five years, and official state around two million of these are paying for cover on which they will never be able to claim. The cover is designed to meet payments on bills, goods, and debts in the event that the policyholder cannot work due to illness or redundancy.

An official from the consumer group Which? said: ‘We’ve always known that people were being mis-sold payment protection, but we were still amazed to discover the scale of it. It appears that salespeople are chasing their commissions, their bosses are chasing profits - where’s the sense of responsibility to the customer?’

The British Banker’s Association said, however, that many people benefit from this cover, adding: ‘PPI provides borrowers with a plan B if their circumstances change. If they lose their jobs or become ill, their commitments can still be met, so it’s important that people are not discouraged from taking it out.’