ABI: Ban on PPI is bad news for borrowers
The Association of British Insurers (ABI) has warned that the ban on Payment Protection Insurance (PPI) put in place by the Competition Commission will have a "devastating" effect on borrowers.
Research released by the ABI has revealed a 69 per cent increase in the numbers of cash-strapped consumers claiming on their PPI policies to help them meet their payment deadlines.ABI says that the move effectively pulls the rug out from under borrowers' feet, leaving them unable to arrange immediate loan protection when their economic circumstances may make it most necessary.
Nick Starling, the ABI's director of General Insurance and Health, said: "By effectively denying consumers PPI in the very economic climate that they need it most, the Competition Commission has got this completely wrong."
The Competition Commission claims that its measures are designed to increase competition in the PPI market, as lenders currently face "little or no competition" when selling PPI to their borrowing customers.
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