OFT to examine PPI sector

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The Office of Fair Trading (OFT) has launched a market study to look in depth at the payment protection insurance (PPI) sector following a super-complaint from Citizens Advice.

The OFT response to the super-complaint, published in December 2005, identified issues which pointed to the sector not working well for consumers and indicated the need for a more detailed examination. The issues were: Consumers face difficulties in getting information they need about alternative suppliers and the information available is often too technical to be understood easily; There are high costs or other barriers to entry for standalone PPI providers; There is a wide degree of variation in pricing in the sector; and Gross profit margins appear high – PPI ratios are ...

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