Two more years of PPI 'rip-off'

[bandonbhoy]

This is title of article in todays Glasgow Herald in Business/Personal Finance section by Simon Bain(simonbain@theherald.co.uk).

Banks can continue to make bumper profits from overpriced payemnt protection insurance (PPI) for up to another two years but consumers can take action more quickly than that to avoid being ripped off. Last week the OFT and FSA finally signalled that buyers on the high street were not only being mis-sold but being ripped off. The real cost of PPI is a fraction of what the banks are selling it for. PPI is pushed as an automatic ad-on to mortgages, credit cards and loans supposedly to cover payemenst missed due to accident, sickness or unemployment. It makes banks up to 20% of their profits annually. A typical five year £10,000 loan may cost only 6.&% from market leader BOS, but add on banks PPI and total cost balloon this to 21.1%.
Even if issue is now referred to OFTnow, it would be two more years before anything could be done about it.
The managing director of Britishinsurance.com says' Until the OFT produces, consumers in their thousands will continue to get a raw deal from amarket which should be their last line of defence.'

The salesmans trick of quoting it inclusively in the loan cost means the consumer has to opt out, having already agreed he could afford the premium. That premium is themn charged up front instead of being deducted monthly, which means extra interest is being paid on the premium. If the policy is cancelled or paid off early, there are hefty penalties.
Examples
Cover per £100 for 30 year old
British Insurance £2.15
Post office £4.50
Abbey £23.72
RBOS £25.65
Loan Protection Insurance for 30 year old
British Insurance £2.15
Abbey £23.72
Direct Line £25.38
MORTGAGE Provider
British Insurance £2.15
Post Office £4.50
Abbey £6.04

Given you some examples form qoyted lists. My examples arenot meant to draw any comparison positively or negatively against any provider, burt merely to outline the differences between providers. Thius article is aposite, because when I received my statements from MBNA, there were monthly insurance charges, which do not applyto me because as pensioner i dont expect to be made redundant or lose my income that i had spent a life earning.

	What are your rights at work Follow this link to read the review of the Guide to your Rights at work, published by Lawpack

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.