Anger Over PPI Charges
The Consumer Association says new report on payment insurance charges is evidence of 'profiteering'
4th April 2005
A new report by investment bank CSFB has highlighted the scale of profits made by credit card and loans companies throught the sale of payment protection insurance (PPI). While a quarter of credit card customers, and nearly half of loan borrowers, took out the insurance, only 4% of them actually made a claim, of which a quarter were rejected.
This leads to huge profit margins of up to 70% - which the Consumer Association says is evidence of 'profiteering'.
The report also suggests that customers are not always aware that the insurance is an optional extra rather than compulsory, and that the policies are not always appropriate for the customer they're sold to.
Read More: Money Guardian
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