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Competition commission says loan insurance probe would continue

London (online-unsecured-loans) November 8, 2007: The Competition Commission says the current investigation into loan insurance is not a simple one and that it needs to carry out the work thoroughly.

The Commission is inviting response to its views expressed in its "emerging thinking" document and nine working papers on different aspects of loan insurance. It is expected that the provisional findings of the inquiry would be out by May 2008.

Payment protection insurance or loan insurance, as it is often called, covers repayments on personal loans, mortgages and credit cards. In case a borrower fails to repay the instalments, the insurance policy comes into play. It applies in case of loss of earnings as a result of accident, sickness, unemployment or death.

However recently, this insurance has come under attack form various consumer bodies. It has been criticised for being expensive and offering limited benefits to the policyholders. Many instances of mis-selling the same have also been noted.

Inquiry chairman Peter Davis said that he was well aware of the concerns surrounding PPI. He added: "We are also conscious that the issues we are deciding upon are by no means simple and it is vital that we carry out our work thoroughly, ensuring that all parties receive a fair hearing."

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