Barclays Spit The Dummy Over Payment Protection Insurance Ban

frankdow — Mon, 07 Sep 2009 21:01:23 +0000

Barclays is to challenge a recent decision by the Competition Commission to ban the sale of the payment protection insurance alongside credit cards, loans and mortgages. From October 2010 the sale of PPI will be banned forcing providers to wait seven days before contacting customers and try to sell them the cover.

The ban is designed to increase competition in the payment protection insurance market, It’s hoped the changes will make it easier for borrowers to change providers and get better rates. It will also help borrowers get rid of the little voice in their heads that says ‘If I don’t take the insurance, they won’t give me the loan”

Barclays justify their case by claiming that the evidence collected by Competition Commission’s investigation is not justified.

A Barclays spokeswoman said: “The Barclays appeal does not challenge the whole report but is targeted specifically against two points.

“The main area of concern is the point of sale ban which, it is felt, is not justified by the evidence that has been provided.

“Additionally, the scope of the market definition set by the Competition Commission is being challenged.

“The decision to appeal these points has not been taken lightly. However Barclays will continue working on the implementation of all of the remedies contained in the Competition Commission’s report as they are applicable.”

Lloyds Banking Group is also supporting the group, yes – the same Lloyds that the Government holds a 43% stake in!

Source: The Press Association

General Insurance & Pure Protection – Winners of the Most Misleading Advice 2008

frankdow — Thu, 03 Sep 2009 22:25:36 +0000

Over nine million individual complaints were made to companies involved in the financial services industry between 2006 and 2008 Banking and loans made up over half of complaints made to financial companies in that period. The Financial Services Authority (FSA) published the complaints figures on the 3rd September 2009. The data indicates that the overall number of complaints has increased by 5.7% over the period, however the biggest increases of 2.02m complaints were seen in the first half of 2007. Misleading advice about Life and Pensions products was the largest cause of complaints at 34%. The number of complaints about other general insurance or protection products (including payment protection insurance) more than doubled between 2006 and 2008 from 61,972 to 126,803 which was largely due to increasing numbers of complaints about payment protection insurance, with 69,686 of the complaints pertaining to misleading advice and 42,037 for poor customer service. Banks and loans managed 44,617 and 128,280 respectively.

5000 Loan Guide » payment protection insurance

Barclays Spit The Dummy Over Payment Protection Insurance Ban

General Insurance & Pure Protection – Winners of the Most Misleading Advice 2008