Market Investigation into Payment Protection Insurance: Volume I, Summary and Report and Volume 2, Appendices and Glossary - Softcover

Competition Commission

Softcover

ISBN 10: 0117067369 ISBN 13: 9780117067363

Verlag: Stationery Office Books, 2009

Inhaltsangabe

The Office of Fair Trading (OFT) referred the supply of Payment Protection Insurance (PPI) to non-business customers of the UK to the Competition Commission for investigation under s. 131 of the 2002 Enterprise Act on 7 February 2008. The Commission's provisional findings were published in June 2008 (ISBN 9780117038622). PPI covers repayments on the insured credit product if the borrower suffers an insured event, usually accident, sickness, unemployment or death. PPI is sold to cover a variety of credit products, but over 90% of the PPI sold in the UK in 2006 was either personal loan PPI (PLPPI), credit card PPI (CCPPI), mortgage PPI (MPPI) or second-charge mortgage also known as secured loan PPI (SMPPI). Other forms of PPI include motor insurance and retail finance. Most PPI policies are sold by distributors at the point of sale of the credit being insured. The PPI policies sold are underwritten by insurers. In 2006 customers in the UK paid £4.4 billion in premiums to be covered by PPI policies and such policies are usually sold either face-to-face; over the telephone or via the internet. PPI policies are paid either through a regular monthly premium or a single premium, which is added to the loan amount when the loan is agreed. The Competition Commission found that each credit provider and financial intermediary faces little competition for the sale of PPI when it is sold in combination with credit it insures. The lack of competition makes PPI highly profitable, with the Commission estimating that the 12 largest distributors of PPI make profits in excess of the cost of capital of £1.4 billion in 2006.

Details zur Ausgabe

• Verlag: Stationery Office Books
• Erscheinungsdatum: 2009
• Sprache: Englisch
• ISBN 10: 0117067369
• ISBN 13: 9780117067363
• Einband: Taschenbuch
• Anzahl der Seiten: 825
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: Nicht verfügbar