PPI industry 'will suffer profits slide'

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The Payment Protection Insurance (PPI) arena will witness a huge slide in profits over the next couple of years, according to Defaqto.

The research firm says an ongoing examination of the products by the Competition Commission will lead to an “inevitable tightening” of the rules under which PPI can be sold. It says with an annual turnover of around £4.5bn and profits in the order of £1.5bn, the industry is likely to suffer a severe dilution of profits when the Commission’s statement of remedies is published. If this includes de-coupling the sale of PPI from that of the credit product, this in itself would have a huge impact on the industry, it says. The findings form part of Defaqto’s latest report ‘Payment Protectio...

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