Loan insurance plan could fuel surge in debt, say insurers
Loan insurance plan could fuel surge in debt, say insurers
Friday 6th June 2008
Under the plans unveiled yesterday by the Competition Commission, proposed measures to reform the sale of PPI included introducing temporary price caps on prices and forbidding the sale of the cover by the company which provided the loan.
However, responding to the news, the Association of British Insurers (ABI) claimed that if the plans are adopted many insurers would stop offering the cover.
As a result, millions would be vulnerable to falling into debt at a time when there is mounting uncertainty over the direction of the economy, it added.
The ABI said: "We are very concerned that the Commission's proposed remedies could destroy this market, particularly while we are facing a period of economic uncertainty."
News of the proposals to reform the sale of PPI comes amid predictions that more and more Britons will struggle with loans and credit card debt this year.
Debt1, official website of Byrom & Keeley - Experts in Debt Management
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