The Hot Potato of Payment Protection Insurance
The OFT transferring PPI to the Competition Commission could be seen as getting rid of a Hot Potato - but it was a struggle to find a picture of a potato that looked “Hot”
I’ve had a first glance at the OFT’s report into the Payment Protection Insurance Market and its subsequent transfer to the Competition Commission and it’s quite an eye opener. One of the most shocking things was when they reported finding a loan with a headline APR of 5%, but when you added in the PPI cost, the true APR came out at a whopping 13%! I’ve often written about this subject and always had the view that it was unfair to consumers that the APR didn’t include the PPI cost and it’s always presented a loophole for the less scrupulous loan dealers to exploit.
I’ll be posting more about PPI as the story unfolds, but in the mean time, I’ve extracted the points relevant to the secured loans market and created a second OFT/PPI page. The page includes an ‘Executive Summary’ and is well worth a read if you don’t get time to read the whole thing.
Perhaps this is a solution to the finding a Hot Potato image problem
